Prospex Obtains Financing For West Africa Acquisition
DENVER, COLORADO--Prospex Mining Inc. (formerly known as Akiko
Gold Resources Ltd.) has secured a commitment, subject to
regulatory approval, for a private placement of CDN $200,000 in
order to close the recently announced purchase of gold property
interests in West Africa from Nearco Jersey (Nominees) Limited.
The private placement consists of one million units at a price of
CDN $.20 per unit. Each unit consists of one common share of
Prospex and one non-transferable warrant entitling the holder to
purchase an additional share of Prospex at a price of CDN $.20 for
one year and at CDN $.25 during the second year.
Upon closing of the private placement and the purchase agreement,
Prospex will acquire majority interests in (i) four gold
concessions in West Africa (two in Guinea, one in Mali, and one in
Sierra Leone), (ii) several pending applications for additional
concessions in Guinea and Mali, and (iii) a joint venture project
being negotiated in Ghana. Two of the concessions (those in Ghana
and Sierra Leone) included in the purchase agreement are at or
near the drilling stage based on favorable results from stream
sediment, soil, and trench samples; artisanal mining activity;
and, on the Sierra Leone property, limited core drilling. The
other concessions (issued and pending) are characterized by one or
more of the following: gold geochemical anomalies; alluvial and
eluvial mining by artisanal or mechanized methods; and locations
near known primary gold deposits or occurrences, on known gold
trends, and/or adjacent to artisanal mining activity.
Subject to closing this transaction, Prospex has also entered into
agreements to employ Mr. David Netherway as Executive Director -
West Africa, to appoint him as a Prospex director, and to appoint
Mr. James Askew as a non-executive director to help Prospex
acquire, finance, explore, and develop gold projects in West
Africa. Both Messrs. Askew and Netherway have extensive West
African gold experience, including key roles in building Golden
Shamrock Mines, Ltd. into a company that was acquired by Ashanti
Goldfields Ltd. in 1996 in a transaction valued at some US $300
million.
Nearco will be entitled to reimbursement of up to US $250,000 of
property acquisition-related expenditures in installments (over a
few years) after Prospex achieves further funding by joint
venture, sale, or financing involving the properties. Upon
reaching a decision to mine, Prospex will pay Nearco a reserve
bonus of up to US $1.00 per ounce of proven and probable reserves
developed on any of the properties, but not in excess of US $2
million per property.
On Behalf of the Board of Directors
"Stanley K. Hamilton"
President & Chief Operating Officer
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Prospex has to dilute to raise money. Given the lack of proven assets and the downward spiral this company has gone thru, I view this development as positive. They were able to raise money, which is something I had my doubts about. They'll have to raise more to explore these properties. But at least something is happening with this company that raises some slight hope for the future.
Bear |
