African Gold spends €3.3m on Ghana gold stake

AFRICAN Gold, headed by Dublin entrepreneur John Teeling, has bought 70% of the Konongo Owere 950,000 oz gold resource in Ghana for €3.3 million ($4m).

Payment will be made in two ways. An initial €1.66m ($2m) in cash to be followed immediately by €832,000 ($1m) in African Gold shares.

Then after 180 days, the Irish-based mining company will hand over a further payment of $1m to complete the deal. The resource covers 125 sq km in the Konongo Owere district of the Ashanti Gold Belt in Ghana and the company has an option to acquire an additional 10%.