NEW YORK, April 29, 2013 /PRNewswire/ -- Ghana Gold Corp. (OTCMarkets: GGCO) announced today that it has signed the Asset Purchase Agreement with the World Sports Alliance Intergovernmental Organization to acquire a significant gold concession in the Central African Republic.
According to the terms of the Asset Purchase Agreement, Ghana Gold acquires a gold concession from the WSA-IGO in the Central African Republic with a total of $5 billion USD in recoverable Gold for 500 million restricted common shares of Ghana Gold Corp., plus a $250 million - 10 year corporate debenture with an annual compounding interest of 6%.
Further condition to the acquisition is a net smelting royalty of 2.5% payable to the WSA as well as a commitment by Ghana Gold to a $50 million, 10 year work program. The WSA will also be paid an administration fee, which will be calculated on the annual approved expenditure.
The Asset Purchase Agreement is schedule to close on or before May 23, 2013.
"We have now completed a major step towards completing this acquisition and once closed this will create a significant and sustainable value for our shareholders " said Elaine Affleck, President of Ghana Gold Corp. "Our focus has been Ghana and now with this acquisition, it is Africa since this will enable us to grow from a small alluvial player to a major producer of Gold for many years to come," further add Mrs. Affleck.
About Ghana Gold Corp.
Ghana Gold Corp. is a gold exploration and alluvial gold production company with properties in the Republic of Ghana. Ghana Gold Corp. seeks to expand operations to other neighboring African countries, which have a great gold mining opportunities.
FORWARD LOOKING STATEMENTS
Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties. There can be no assurance that such forward-looking statements will prove to be accurate. Actual result and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change, other than as required pursuant to applicable securities laws.
SOURCE Ghana Gold Corp.