AR’s flagship investment has been negotiated. Ashanti Resources, Inc. has signed a Definite Purchase & Sale Agreement for the rights of Banka Project Gold Mine Concessions -Ashanti Gold Belt, The Banka Lease and Banka Reconnaissance License (the “Banka Concessions”) are also referred to as the “Banka Project”. The Banka Project covers 29.63 sq km or 2,963 hectares and is located along the northeastern margin of the Ashanti Belt, in the Ashanti Akyem South District, of the Ashanti Region of Ghana. The Banka Project is located about ten kilometers west south of Newmont’s Akyem deposit which is likely to become a significant gold mining center in Ghana within the next couples of years.
This concession will be a large-scale gold mine operation in the “Ashanti Gold Belt Region”, which is Ghana’s leading production area.
The capital cost of the Banka Project mine, is estimated to be US$12.5 million, including acquisition, the construction of a gravity-fed mining processing plant, and machinery outlay. The mine, for which thorough due diligence still needs to be performed reserve are estimated to approximately 500,000 oz.- 5 million ounces of gold (current gold prices are over $1,690 /ounce). The Life of the Mine is estimated to be approximately 10 years. At a very conservative capital cost, this highly promising resource has an estimated investor return rate of 22% and a payback period of 2 years. With funding, AR expects it can be in production in Q4 of 2020.
The Banka Project Mine will be the first of many investments in Ghana.
AR’s Business Model Will Be As Followed:
- Develop & Acquire Concessions
- Gold Trading Business
- Build A State Of The Art Gold Refinery