The Ministry of Mines and Energy for the Republic of Ghana has informed International Gold Resources (TSE) that it is prepared to sell its 18% contributory equity interest in the Bibiani gold project.
IGR can earn a 50% interest in the project by spending US$3 million on exploration and by delivering a bankable feasibility study. The preliminary estimate of measured and indicated resources, prepared earlier this year, states that the Bibiani project contains over 2 million oz. gold.
An understanding has been reached such that IGR will have the exclusive right to obtain the 18% interest at a price to be determined by independent valuation. The purchase price will be based on results from the bankable feasibility study, now expected by mid-July. The transaction will close later this fall.
Once the study is completed, a new company will be formed which will acquire the 18% interest. Upon acquisition, IGR’s participating interest will rise to 63%, the government of Ghana will hold a 10% non-contributing participating interest, and the remaining 27% will be held by other parties.
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