GHANA MINISTRY CONSENTS TO
TRANSFER OF NOYEM LICENSE FROM NEWMONT TO AFRICAN QUEEN
Vancouver, British Columbia - AFRICAN QUEEN MINES LTD. (the
"Company") is pleased to announce that Hon. Alhaji Collins Dauda (MP), Minister
of Lands, Forestry and Mines of the Republic of Ghana, has today consented to
the Purchase and Sale Agreement dated September 29, 2009, as amended, between
Newmont Ghana Gold Limited ("NGGL"), the Ghanaian subsidiary of
Newmont Mining Corporation (NYSE: "NEM"), and the Company's
Ghanaian subsidiary, AQ Ghana Gold Ltd. ("AQGGL"), and transfer of
the underlying Noyem-Nyafoman Prospecting License (the "License")
to AQGGL. Formal transfer of the License is pending payment of
customary transfer fees and taxes. Senior management of the Company
will be traveling to Ghana next week for meetings with Government officials,
representatives of NGGL and members of the local community to discuss final
details of the transfer and the way forward for the Company's Phase 1
exploration program. A further update will be provided following
such meetings.
The Noyem Gold Project. The License currently covers an area
of approximately 28.9 sq. km. located within the Birim North District of
Ghana's Eastern Region, approximately 130 km. NW of Accra. It is at the
northeastern end of Ghana's well-known, gold-producing Ashanti Belt, near
Newmont's Akyem deposit which is presently under development for potential production.
In addition to its close proximity to Accra which facilitates access, the
Project is bisected in a NE-SW direction by a tarred road. It has long
been host to large numbers of artisinal miners and in October, 2008, a
shed-off area of 8.98 sq. km. adjacent to the current license area was
reserved for small scale mining. There remain issues to be resolved
with a number of the local small scale miners
whose claims may be in conflict with contemplated
development of a large scale project, and settlement negotiations have been
progressing and are ongoing. Further details of the Project and the
underlying agreement with NGGL are contained in the Company's Press Release
dated October 19, 2009.
The Akan Agreement. The Company's rights to the Project are subject to an Earn-In and
Joint Venture Agreement (the "Akan Agreement"), with Marshall
Islands' private company Akan Exploration Ltd. ("Akan"), under
which the Company may earn up to a 75% interest in the Noyem Gold Project by
funding prescribed stages from exploration through feasibility. Akan
has the right to participate at its election pro-rata after the Company has
reached 60% ownership interest by funding all costs through
pre-feasibility. The Company is designated as manager and
operator of the Project and holds the License on behalf of the joint venture
partners, subject to full consultation with Akan on all material aspects of
the Project.
According to Irwin Olian, CEO of the Company, "Approval of
transfer of the underlying Noyem-Nyafoman Prospecting License to our Ghanaian
subsidiary, AQGGL, now sets the stage for the commencement of our work
programs at Noyem in 2011, with our partner Akan Exploration. Ghana is
a great place to be working, with a long history of successful gold mining operations
and a positive relationship between the Government and mining operators. The
Noyem Project has a large body of historic work already defining highly
prospective targets. We are delighted that the Project is now moving
forward."
About African-Queen
The Company is an exploratory resource company with diversified
mineral properties in Southern and West Africa. It is exploring its
properties in Mozambique, Kenya and Ghana for gold and other metals and it is
exploring its properties in Botswana and Namibia for diamonds. The Company's
licenses in Botswana and Namibia comprise approximately 9208 sq km of diamond
prospects. In Mozambique it has approximately 230 sq km of gold and other
metals licenses under an agreement with another company. In Kenya it has
approximately 112 sq. km. of gold and other minerals licenses under an
agreement with another company. Its operations in Botswana are
carried out through its operating subsidiary, PAM Botswana (Pty) Ltd.; its
operations in Namibia are carried out through its operating subsidiary PAM
Minerals Namibia (Pty) Ltd.; its operations in Mozambique are carried out
through its subsidiary PAM Mocambique Limitada and its operations in Ghana
are carried out through its subsidiary AQ Ghana Gold Limited. Its operations
in Kenya are being carried out through its operating subsidiary AQ Kenya Gold
Limited. The Company has its executive offices in Vancouver, Canada.
ON BEHALF OF THE BOARD OF DIRECTORS OF
AFRICAN QUEEN MINES, LTD.
"Irwin
Olian"
Irwin Olian
Chairman & CEO
For more information, contact:
Irwin Olian, President and CEO
E-mail: tigertail@africanqueenmines.com
Phone: (604) 899-0100
Fax: (604) 899-0200
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Carrie Howes, Corporate Communications
Email: carrie@africanqueenmines.com
Phone: Germany - +49 (0) 21141 740411
U.K. - +44 (0) 870 490 5443
Canada - +1 416 900 3634
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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.
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