AFRICAN QUEEN ENTERS INTO CONDITIONAL AGREEMENT COVERING SALE OF ITS GHANA ASSETS
Vancouver, British Columbia — AFRICAN QUEEN MINES LTD. (the “Company”)has entered into a conditional agreement with a Ghana-based resource company to purchase from the company 100 per cent of the shares of the capital stock of its Ghanaian operating subsidiary, AQ Ghana Gold Ltd., for cash and a net smelter royalty. The terms and provisions of said agreement are subject to the review and approval of the Minerals Commission of Ghana, and formal approval of the Minister of Lands and Natural Resources. Akan Exploration Ltd., the company's joint venture partner, and Newmont Mining Corp., prior owner of the underlying exploration licence, will share in the proceeds of the transaction. Further details of the transaction will be provided after government review and approval.
The principal asset of AQ Ghana is its exploration licence covering the Noyem-Nyanfoman gold project within the Birim North district of the eastern region of Ghana. The area under licence now comprises two non-contiguous blocks aggregating approximately 30.23 square kilometres, namely Noyem A (Nyanfoman), which covers 23.55 square kilometres, and Noyem B (Apragya), which covers 6.68 square kilometres.
The project is characterized by palaeoplacer gold mineralization which is hosted within the basal conglomerates of the Tarkwaian group's Banket formation. The Tarkwa gold mine operated by Gold Fields Ltd. is also hosted within the conglomerates of the Banket formation, and has a combined gold resource of approximately 15 million ounces. Initial results reported from the company's core drill program (press release dated Nov. 13, 2012) are consistent with reported historic results from predecessors of Newmont, and tend to confirm the presence in the region over a strike length of at least 5.6 kilometres of a relatively continuous gold-bearing reef, varying in width from one metre to five metres.
According to Irwin Olian, chief executive officer of the company: "AQ is undertaking a number of initiatives to restructure the company with a view toward ensuring its continued viability and building shareholder value. Divestment of its Ghanaian assets through the potential sale of its Ghanaian operating subsidiary is a part of this restructuring plan. Further details will be provided as the transaction progresses. The company is continuing to develop strategies for maximizing value from its portfolio of resource properties in Kenya."
The Company is an exploratory resource company with diversified mineral properties in East and West Africa. It is exploring its properties in Ghana and Kenya for gold and other metals. In Ghana it has 30.23 sq. km. under license for gold under an agreement with another company. In Kenya it has approximately 850 sq. km. under license for gold and metals, and a further 737 sq. km. of gold and other minerals licenses under agreements with two other companies. The Company’s operations in Ghana are carried out through its subsidiary AQ Ghana Gold Limited. Its operations in Kenya are carried out through its operating subsidiary AQ Kenya Gold Limited. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, Canada on April 30, 2008, and received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.
ON BEHALF OF THE BOARD OF DIRECTORS OF
AFRICAN QUEEN MINES, LTD.
Chairman & CEO
For more information, contact:
President and CEO
Phone: (604) 899-0100
Fax: (604) 899-0200
Dubai - +971 55 997 0427
London - +44 (0) 7780 602 788
Germany - +49 (0) 21141 740411
U.K. - +44 (0) 870 490 5443
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.