KWG Resources (ME), formerly Kewagama Gold Mines, has entered into an agreement with Canadian Overseas Development allowing KWG the option to earn an interest in two mineral properties in Ghana, West Africa.
Under the agreement, KWG can earn a 55% stake in each of the properties by spending $515,000 over two years, including $70,000 in preliminary work over the next four months, and $15,000 upon signing.
After the preliminary work is completed, KWG can retain its options by granting COMDEV 50,000 shares for the Asikam property and 100,000 shares for the Anwia property.
Pending regulatory approval, KWG will also grant COMDEV the option to buy 100,000 common shares at $1.25 each for two years after signing the agreement. Preliminary work on the alluvial Asikam property has indicated the presence of a pay zone with an average thickness of 1.8 ft. and an average grade of 0.05 oz. gold per cu. yd. Located within a known diamondiferous area, the property spans four square miles.
Widespread gold mineral-ization associated with quartz veining has also been reported on the Anwia property where values grading from 0.08 oz. in outcrop and boulder train over a width of 366 ft. to 0.06 oz. from grab samples.
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