Heres the news release you've been waiting for:
Ghanan update; Zimbabwe joint venture
Adikann Goldfields Ltd ADKShares issued 151618301997-11-27 close $0.06
Friday Nov 28 1997Mr J. Graham Douglas reports WESTBANK CONCESSION The
Westbank concession is in the Asankrangwa gold belt in Ghana, West
Africa, approximately 15km west of the Ashanti-Ayanfuri gold mine. To
date, the company has completed four trenches above an old
shaft/underground structure. The mineralized granite is approximately
50m wide and greater than 100m long which is comparable to the
mineralized bodies at Ayanfuri which are approximately 30-50m wide. The
gold values also appear to be similar in many areas of the intrusive.
The granite is open to the north and to the south where it extends off
of the concession into open ground. The gold values from the trenching
are encouraging. CORPORATE MATTERS The current conditions in the junior
resource markets have had a significantly adverse affect on the
company's ability to complete its exploration plans in Ghana. The
company's property portfolio in Ghana is extensive, exploration is at
the grass roots geochemical stage and accordingly the costs of
exploration and management for this program are high. The company has
therefore elected to curtail exploration activities to a minimum and to
seek potential joint venture partners to further exploration on a
concession by concession basis. Management has had discussions with the
optionors of the properties and has received their assurances they will
cooperate in any reasonable joint venture proposals. Several such
discussions with potential joint venture partners are under way, however
there can be no assurance that any of these will be successful. The
company has provided notice that it will not proceed further on the
Golden Crown and Covenant concessions and has taken steps to return
these concessions to the optionors. The company will continue to
maintain its remaining properties in Ghana in good standing and to
complete if practical certain other opportunities currently in the
advanced discussion stage. The conclusion of any of these opportunities
will likely be dependent on finding a financial or operating partner. As
a result of the above developments, the company will be reviewing all of
its exploration property investments in Ghana with a view to writing off
all or a portion of its acquisition and deferred exploration costs
associated with these projects. The company previously announced a
preliminary agreement to acquire several properties in Zimbabwe.
However, the vendor has been advised by the company that it will not be
proceeding as it has been unable to complete the private placement,
which was a condition of the agreement. The company has entered into a
joint venture agreement to process gold in Zimbabwe and expects to
commence these operations in the near future. The terms of the agreement
require the company to finance initial working capital of the venture of
approximately US$50,000 and an additional US$50,000 on commencement of
operations. The company is also committed to issuing 250,000 shares in
connection with this agreement which are to be held in escrow. One half
of the shares are to be released when the company has received US$50,000
from the venture and the balance on receipt by the company of the next
US$50,000. The company is entitled to 50% of the profits of the venture.
The term of the agreement is seven years at which time the venture may
be extended for an additional five years or it may be liquidated. The
company has also begun a search for North American gold exploration
properties and is reviewing two opportunities. (c) Copyright 1997 Canjex
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