17th Oct 2007 07:00
Central African Gold PLC17 October 2007 Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining 17th October 2007 Central African Gold Plc ("CAG" or the "Company") Acquires 100% of Motako gold licence in highly prospective region of Botswana Central African Gold Plc, the AIM traded gold mining and exploration company,has acquired 100% of the issued shares and liabilities in Motako Limited ("Motako") which owns the 430.3 km(2) Kraaipan prospecting licence in Botswana,for a cash consideration of US$250,000. Motako, whose licence spans the highlyprospective Archean Kraaipan greenstone belt, was a 100% owned subsidiary ofGolden Tau Limited ("Golden Tau"), of which CAG already owned a 53% controllinginterest. Following the acquisition, all CAG shares in Golden Tau will becancelled. As part of the transaction, Golden Tau will also assign to CAG anunsecured interest-free loan, of AU$363,300.82 (approximately US$328,544),extended to Motako by Golden Tau to fund its exploration activities to date onthe tenement. The Board believes that by assuming full control of the Motakoproject, it can fully utilise CAG's in-house technical team to develop theregion's potential. The Kraaipan project extends over some 400 km(2) of the north westward strikecontinuation of the Archean Kraaipan greenstone belt, originating from SouthAfrica. The belt is highly prospective for gold, with past production andresource figures indicating approximately four million ounces Au at the GoldRidge mine in South Africa. To date, Golden Tau has undertaken a detailedexamination of previous reconnaissance work completed in the 1980's. Explorationincluded geological mapping, airborne geophysical surveys and limited percussionand diamond core drilling. Results indicated gold mineralisation although theeconomic viability is yet to be determined. The 430.3 km(2) Kraaipanprospecting licence was recently extended for a further two years commencing 1July 2007 and follow-up exploration to confirm the economic viability has beenscheduled for early 2008. Greg Hunter CEO of CAG said, "This acquisition is another step in CAG's strategyto develop a substantial exploration programme in Africa. We believe that thelicence area is prospective for gold and will provide excellent explorationpotential. For this reason we have increased our stake in order to take fullcontrol and use our in-house expertise to fully evaluate the region's potential.We are rapidly advancing all our projects with the intention of building ourresource base across Ghana, Mali, Zimbabwe and Botswana. In line with this, werecently reported a circa fourfold increase in our underground Ore Reservesestimate at Bibiani in Ghana, which marked a significant step in the Company'sdevelopment. " * * ENDS * * For further information please visit www.centralafricangold.com or contact: Central African Gold PlcGreg Hunter/Nicole Broome Tel: +27 (0) 11 676 2500 In London:St Brides Media & Finance Ltd Hugo de Salis/Felicity Edwards Tel: +44 (0) 20 7242 4477 Strand Partners LimitedSimon Raggett /Braden Saunders Tel: +44 (0) 20 7409 3494 RBC Capital MarketsMartin Eales/Andrew Smith Tel: +44 (0) 20 7029 7881 In South Africa:Russell and AssociatesCharmane Russell Tel: + 27 (0) 11 880 3924 Notes to Editors: Central African Gold Plc, admitted to AIM in April 2004, was established toacquire gold assets with a geographical focus on Africa. The Company hasestablished a sound portfolio with projects in Ghana, Mali, Zimbabwe andBotswana. It has a highly experienced management team, which has worked togetherfor four years managing six underground greenstone gold mining operations andbuilding exploration portfolios. CAG's portfolio includes the producing Bibiani gold mine and prospectinglicences in Ghana, which it acquired from AngloGold Ashanti Limited, three jointventures in Mali covering 22 prospective permits and a licence in Botswanacovering the extension of the Kraaipan greenstone belt from South Africa. CAGrecently acquired five mines and extensive exploration properties in Zimbabwe.The management team is evaluating additional prospects in Africa to establishCAG as a leading mid-tier African gold producer with world class exploration andproduction assets. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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