African Queen receives additional 12 claims at Noyem-Nyanfoman gold project

African Queen Mines (CVE:AQ) announced Tuesday it arrived at a settlement for an additional 12 mining claims at its Noyem-Nyanfoman gold project in Ghana.

The 12 claims cover approximately 300 acres on the Noyem A reef in Ghana's Ashanti Belt. In July, the company reached settlements for an additional seven of the 26 mining claims that conflict with its prospecting license for the gold property.

In March, African Queen received a one-year extension on its prospecting license that covers 28.9 square kilometres in the Birim north district of Ghana's eastern region, and in the northeastern end of the gold-producing Ashanti Belt.

Since then, 26 small-scale mining claims were identified that could conflict with the development of African Queen's planned large-scale mining project. The company has since been in negotiations with the owners of the claims to achieve settlements.

In consideration for the claims, the company will make a one-time, undisclosed cash payment to the small-scale mining groups that held the claims, including Nana Boafo Kesse Ventures, Boafo Kesse Enterprise, A.D. Mohammed Enterprise, Evelyn Korang Enterprise, Obiri Anima Enterprise, Torgbor Laryea Enterprise, Akroman Enterprise, Abrimpong F/C Enterprise, Nabaab Mining Company, Abass Torgbor Enterprise, M. Boaheman Enterprise, and Bamab Enterprise.

African Queen said its subsidiary, AQ Ghana Gold, may purchase certain mining equipment currently on site, and will attempt to hire as many of the miners already employed at the properties.

The transaction is subject to the approval of the Ghana Mining Commission. Negotiations with the holders of the remaining seven mining claims continue.

The company said it will begin drilling at its key target areas this year, adding that its ground exploration tem is currently at work on the property.

CEO Irwin Olian said: "We are delighted that the settlement process at Noyem-Nyanfoman has been proceeding in a positive manner and are particularly grateful for the support of Nana Boafo Kesse and the Nyanfoman Chief."

African Queen, under a joint venture agreement with Akan Exploration, can earn a 75% interest in the Noyem-Nyanfoman gold project. African Queen is designated as manager and operator of the project, and holds the license on behalf of the joint venture partners.