AFRICAN QUEEN CLOSES SALE OF GHANA SUBSIDIARY AND ASSETS
Vancouver, British Columbia — AFRICAN QUEEN MINES LTD. (the “Company”)is pleased to announce that it has now closed the sale of 100% of the shares of the capital stock of its Ghanaian operating subsidiary, AQ Ghana Gold Limited ("AQGGL"), to AKA Petroleum Ghana Limited ("AKA") for gross proceeds of U.S. $1.0 Million and a 2% net smelter royalty. AKA is a Ghanaian-based resource company. The terms and provisions of said agreement were approved by the Minerals Commission of Ghana and the Minister of Lands and Natural Resources. The transaction was first announced in the Company's PR dated September 16, 2014.
Swiss-based Akan Exploration Ltd., the Company's JV partner, and Newmont Mining Corp. ("Newmont"), prior owner of the underlying exploration license, are sharing in the proceeds of the transaction. The Company's share of the gross proceeds is U.S. $475,000. In addition, the Company receives a net smelter royalty on gold production from the License going forward in the sum of 1/2 of 1% from AQGGL.
The principal asset of AQGGL is its Exploration License (the "License") covering the Noyem-Nyanfoman Gold Project within the Birim North District of the Eastern Region of Ghana (the "Project"). The area under license now comprises two non-contiguous blocks aggregating approximately 30.23 sq. km, namely Noyem A (Nyanfoman) which covers 23.55 sq. km and Noyem B (Apragya) which covers 6.68 sq. km.
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 (PR dated November 13, 2012) are consistent with reported historic results from predecessors of Newmont and tend to confirm the presence in the region over a strike of at least 5.6 km of a relatively continuous gold-bearing reef varying in width from one to 5 m. AKA is planning to focus initially on generating gold production from tailings, surface and near-surface deposits on the license.
According to Irwin Olian, CEO of the Company, "Closing of the sale of our Ghanaian subsidiary is generating cash with which to pay the Company's outstanding obligations and to provide working capital. It also eliminates a significant ongoing drain on the Company's cash reserves. AKA is a well-funded resource company with Ghana operations. Divestment of our Ghanaian assets through sale of our Ghanaian operating subsidiary is a part of the Company's efforts to reposition the Company with a view toward ensuring its continued viability and building shareholder value. The Company will now focus its attention on advancing and realizing value from its Kenyan gold and copper properties."
About African Queen
The Company is an exploratory resource company with diversified mineral properties in East Africa. It is exploring its properties in Kenya for gold and other metals, where it has approximately 850 sq. km. under direct license for gold and metals, and a further 737 sq. km. of gold and other minerals licenses under agreements with two other companies. 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.