Africa West Minerals Corp. ("Africa West") announces that it has entered into an option agreement with Cassidy Gold Corp. ("Cassidy"), pursuant to which Cassidy has the option to acquire a 60% interest in Africa West's interest in two mineral licenses located in the Republic of Liberia, the Kanweaken and Gedabo exploration licenses, situated approximately 350 km S.E. of Monrovia, the capital of Liberia, and 50 km N. of the port town of Harper. The Government of the Republic of Liberia has granted to Africa West's indirectly owned subsidiary, Liberian Gold Corporation Inc., mineral exploration rights over approximately 480 km2 (formerly 960 km2) on the eastern side of the Gedabo area, situated in the Maryland and River Gee Counties, Republic of Liberia, and mineral exploration rights over approximately 500 km2 (formerly 1000 km2) in the Grand Kru, Maryland and River Gee Counties, Republic of Liberia. The exploration licenses for the above two properties are under the terms of Mineral Exploration Agreements (MEA) issued by the Government of the Republic of Liberia issued to Liberian Gold Corporation Inc. The licenses include rights to all mineral commodities. The MEAs were effective March 5, 2005 and had a term of three years (Exploration Period) from March 22, 2005. An extension of two years was granted to Africa West by the Government of Liberia effective June 12, 2008 and expiring on June 9, 2010. Pursuant to the extension of the Agreements, Africa West was required to reduce the size of the Licenses by 50%.
In consideration for the grant of the option, Cassidy will subscribe for 1,000,000 common shares of Africa West at a price of $0.10 per share upon receiving TSX Venture Exchange (the "Exchange") approval for the agreement. In order to maintain the option, Cassidy is required to fulfill Africa West's obligations under the relevant license agreements by paying an annual renewal fee of US $5,000 per license on or before each of June 9, 2009 and June 9, 2010, paying annual rental fees of a maximum amount of US$43,588 on or before each of June 9, 2009 and June 9, 2010 and incurring expenditures in the maximum amount of $484,316 on or before each of June 9, 2009 and June 9, 2010. In the event that Africa West determines to abandon any concessions comprising the property, the annual rental fees and expenditures will decrease correspondingly.
Cassidy is a public company listed on the Exchange under the symbol "CDY". The transaction contemplated by the option agreement constitutes a non arms' length transaction pursuant to the policies of the Exchange as Messrs. James Gillis and Chris Wild are directors and shareholders of both Cassidy and Africa West.
For further information, please contact James Gillis, President.
This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Africa West believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Africa West's management on the date the statements are made. Africa West undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, except as required by law.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.