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Hodges divests of Ghanaian assets

Hodges divests of Ghanaian assets

Photo by Bloomberg

10th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Hodges Resources has entered into a sales agreement to divest of its interest in the Salman South and Mame gold projects, in southern Ghana.

Under an agreement with an unnamed private company, Hodges would divest of 100% of the issued share capital in Wells Gold Corporation, which owns the rights and interest in both gold projects.

The company has received a nonrefundable deposit of $100 000, and pending the completion of a positive due diligence, would receive another $1-million as payment for the projects.

“The company was happy to have reached an agreement on the Ghana project with a company who has a West Africa gold focus,” said Hodges MD Mark Major on Monday.

“It is clear that the private company has the funds, in-country team and company focus to advance the project forward in the immediate future.”

The projects are located in the southern extension of the Ashanti gold belt and cover an area of 67.7 km2.

Major said that the divestment of the two gold projects allowed Hodges to focus its attention on creating shareholder wealth through its Morupule South coal project, in Botswana, where the company has a 2.4-billion-tonne Joint Ore Reserves Committee-compliant resource.

The company was hoping to develop an initial 1.5-million-tonne-a-year operation at Morupule.

Edited by Creamer Media Reporter

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