DENVER, Oct. 22, 2012 /PRNewswire/ -- Discovery Gold Corporation (OTCQB: DCGD) ("Discovery Gold" or the "Company") is pleased to announce that the Company's wholly-owned subsidiary, Discovery Gold Ghana Limited, has increased its interest in the Edum Banso Gold Project in the prolific gold producing Ashanti Gold Belt in Ghana from 70% to 95%.
Discovery Gold's President, Steve Flechner, stated that, "The Company's management and board of directors are extremely pleased to have been able to re-consolidate 95% ownership of the option for the Edum Banso Gold Project for the benefit of Discovery Gold's shareholders, while pursuing other avenues for short term exploration funding."
Pursuant to an earn-in agreement effective January 25, 2012, Discovery Gold Ghana Limited granted a 25% working interest in the Project to North Springs Resources Corp. in exchange for ten million shares of its stock (the "Shares"). The intention was to sell or borrow against the Shares in order to fund exploration of the Project. However, effective October 1, 2012, the market price of the Shares was less than the price required under the earn-in agreement, and therefore Discovery Gold has returned the Shares and reacquired its 25% interest in the Edum Banso Project. Discovery Gold also maintains the right to re-purchase half of the remaining 5% working interest not held by the Company.
Mr. Flechner added that, "The geologic consultants, with whom the company is planning its pre-drilling exploration work, returned last week after briefly visiting the project target sites in Ghana, and are now updating their specific recommendations to the Company for the anticipated pre-drilling work program."
Discovery Gold anticipates that further details regarding exploration plans, permitting, financing, and work schedules for the Edum Banso Gold Project will be released shortly.
About Discovery Gold Corporation
Discovery Gold Corporation is an emerging U.S. based mineral exploration company. The Company's wholly-owned subsidiary, Discovery Gold Ghana Limited, currently holds a 95% interest in the option of the exclusive rights to explore the Edum Banso Gold Project within the historic and prolific gold producing Ashanti Gold Belt in Ghana.
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Forward-Looking Statements/Disclaimer: Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may be identified by the use of words such as "anticipate", "believe", "expect", "may", "will", "would", "should", "plan", "projected", "intend", and similar expressions. The Company bases these forward-looking statements on current expectations and projections about future events, based on information currently available. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company disclaims any obligation to update any of its forward-looking statements, except as may be required by law. The Company's interest in the Edum Banso Gold Project is subject to final Ghanaian government approval of the licence transfer. The Company has no mineral resource or reserve estimate for the Edum Banso Gold Project at this time, has no assurance that it will discover significant mineral resources, and may not have sufficient funding to thoroughly explore, drill or develop its property.
SOURCE Discovery Gold Corporation