PORT ST. LUCIE, Fla., March 1, 2013 /PRNewswire/ -- Ghana Gold Corporation; (PINKSHEETS: GGCO) is pleased to announce that they have entered into a Letter of Intent to acquire Founders Mining & Minerals PLC. (GXG: FMMP).
Founders Mining & Minerals PLC is a UK based company which commenced gold production in Ghana's Western Region in February 2011. In addition to increasing Ghana Gold's fleet of heavy equipment, Founders brings further alluvial and hard Rock land options, including an agreement to develop 250 Acres, with a low land royalty, on the huge Jukwa Concession, the same on which Ghana Gold is already in production. It is expected that this merger and the additional equipment, Ghana Gold will increase its' excavation potential and subsequently increase production significantly. The combination of the two firms will create greater economies of scale and cost savings for alluvial operations.
The Companies management has been engaged in merger discussions for several months and has resulted in this LOI. The combined Company will continue under the name of Ghana Gold Corporation which best reflects the business and the region in which the two companies conduct mining. Management hopes to finalize all details of the transaction within the next 30 days.
Mr. Robert Kirkcaldy, President and COO of Ghana Gold Corporation, commented, "We are very excited to bring Founders assets into Ghana Gold. We'll have choices on where to deploy Founders heavy equipment. As soon as our Ahenkro is approved, we'll strongly consider deploying the equipment there to jumpstart production. This is a significant step with regard to the Company's aspirations to becoming a leading gold developer in Ghana and West Africa."
The company's website is www.Ghanagoldcorporation.com
Contact: Robert Kirkcaldy, President and COO
Ghana Gold Corporation
For further Information and inquiries please call: 866-340-3095.
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 Corporation