Aussie explorer acquires 70% of Ghana gold project

15th January 2010

By: Jonathan Faurie

  

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Australian exploration com- pany Signature Metals has exercised its option to acquire 70% of the Konongo gold project, in Ghana, from Mwana Africa.

Signature says that the acquisition is significant as it provides it with a good foundation on which to build the company. Konongo is a million-ounce project located in the Ashanti gold belt, in Ghana.

Signature Metals MD Bill Oliver reports that the property has promising exploration potential and t

he decision to acquire the project follows receipt of final approvals from the Ministry of Lands, Forestry and Mines in Ghana as well as from the Ghanaian Minerals Commission.

“Encouraging initial results from the company’s mining study into the Konongo gold project, coupled with better-than-expected drill results, have led all parties to the agreement to agree that the best way to develop the project is under the owner- ship of Signature Metals,” says Oliver.

Signature will issue 50-million shares to settle the transaction. Shareholders have since granted approval for the issue.

Under the terms of the agreement, a further payment of 50-million shares or a cash payment of A$1-million will be made once the project achieves one-million ounces in measured and indicated Joint Ore Reserve Committee (Jorc) resources. A final payment of A$3-million in cash or shares will be made following the production of 100 000 oz of gold. The project currently contains a Jorc-compliant resource of 15- million tons.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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