West Africa Gold Inc.'s Significant Shareholder to Distribute Its Entire Restricted Shareholding
June 15 2004 - 9:45AM
PR Newswire (US)
West Africa Gold Inc.'s Significant Shareholder to Distribute Its
Entire Restricted Shareholding Significant Shareholder in the
Company, Hanover Capital Group plc to Distribute Its Entire Holding
of Restricted Shares in the Company to Its Shareholders NEW YORK,
June 15 /PRNewswire-FirstCall/ -- West Africa Gold Inc. (OTC:WAGI)
(BULLETIN BOARD: WAGI) announced today that it has been advised by
a significant shareholder, UK based, Hanover Capital Group plc
("Hanover"), that Hanover will now commence with the distribution
its entire shareholding in West Africa Gold Inc, that being in the
amount of 638,958,360 shares of restricted shares of Common Stock
in the Company, to Hanover's shareholders. This represents a 30.41%
shareholding interest in the Company at this time. Stephen Lumb,
the Chairman of Hanover Capital Group plc, the UK Based Investment
Company said today that this shareholding in the Company is being
distributed to our shareholders in order to unlock value and to
complete the process of "winding down" Hanover's business. Lumb
said that for every one Ordinary Share in Hanover, its shareholders
would receive 3.3334 shares of West Africa Gold Inc restricted
Common Stock. He added that Hanover's share in the Company had been
extremely beneficial for his shareholders and that the value being
released to them from this "unbundling" represented a distribution
of stock valued at approximately three times the price that
Hanover's share had ever traded whilst quoted on London's
Alternative Investment Market "AIM". Stephen Lumb is a Consultant
to West Africa Gold Inc in respect of all of its Corporate and
Structured Finance transactions. Richard Axtell, the President of
West Africa Gold said he was delighted with this move by Hanover
and added that it would bring a further 8,500 shareholders to West
Africa Gold, with these new shareholders being primarily based in
the United Kingdom. About West Africa Gold Inc.: West Africa Gold
(http://www.westafricagold.com/) is an aggressive gold exploration
company that has acquired certain rights to mine for minerals,
primarily gold, in various regions of the Republic of Mali, which
is located in West Africa. Their outstanding exploration and
operational management team has in excess of 60 years of
professional geological experience, and has extensive familiarity
on a local level in respect of mining in Africa. The team is highly
educated, including PhDs, and all have recognizably solid
reputations throughout the mining industry. The company also
recently announced and executed a 10-for-1 forward stock split to
improve trading liquidity and to attract smaller investors. West
Africa Gold currently has five projects underway. They are
Toubikoto (Gold), Manianguinti (Gold), In Darset (Gold, Base
Metals), Anefis (Gold, Base Metals), and Touban (Nickel, Copper,
pge's). The five projects are diversely located throughout Mali,
and aggregately cover an impressive 1000 square kilometers. Since
2001, Mali has been the 3rd largest gold-producing country in
Africa, trailing only South Africa and Ghana. Most importantly, to
West Africa Gold, is the political stability and harmony enjoyed by
both the Malian people and foreign Mining companies operating in
Mali. Gold accounts for approximately 90% of Mali's total mineral
exports, and in excess of 20% of all exports. Malian gold
production is expected to almost double to 37% when several new
projects go into full production. Mali has been extensively
evaluated and it has been concluded that the country has an
incredible 350 tons of recoverable gold, and is widely recognized
as having enormous potential for abundant gold extraction. West
Africa Gold is well positioned to reap great benefits from its
Malian properties. The Independent Geological Evaluation of West
Africa Gold's properties are that they may contain an Inferred
Geological Resource of up to 3,000,000 ounces of gold. Extremely
high Values of Zinc and Copper have also been recorded. Mali is
also known for its low extraction costs, so certain expenses will
be controlled. Considering the amount of gold in Mali, as well as
the sheer size and professionally evaluated potential of its
properties, West Africa Gold has a very bright future ahead of it.
Its Advisory Committee will consist of renowned mining and
geological experts. This highly experienced and dedicated team will
have the local expertise so as to be familiar with Mining
operations in Mali. West Africa Gold is debt free and is in the
final stages of preparation to raise an additional US$5 million in
additional funding. The company plans to use this money to continue
to explore and create additional value to its current properties,
and to identify and secure additional Gold Mining Properties. West
Africa Gold has many positive factors that weigh heavily in its
favor, and with Gold holding its own at around the US$380/oz level,
it continues to be a company with enormous potential. Statements
contained in this press release, which are not historical facts,
are forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based largely on the Company's
expectations and are subject to a number of risks and uncertainties
beyond the Company's control, including but not limited to
economic, competitive and other factors affecting the Company's
operations, management team effectiveness, expansion strategies,
available financing, market prices and recovery costs, government
regulations involving the Company, facts and events not known at
the time of this release, and other factors discussed in the
Company's filings with the Securities and Exchange Commission.
These statements are not guarantees of future performance and
readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. The Company undertakes no obligation to update publicly
any forward-looking statements. This release was issued through
Major Newswire (http://www.majornewswire.com/) DATASOURCE: West
Africa Gold Inc. CONTACT: Stephen Lumb, +1-212-672-1850, for West
Africa Gold Inc. Web site: http://www.majornewswire.com/ Web site:
http://www.westafricagold.com/
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