STEVENSVILLE, Mich., Feb. 22, 2012 /PRNewswire/ -- Norman Cay Development, Inc. ("Norman Cay") (OTCBB: NCDL) (PINKSHEETS: NCDL) is pleased to announce that it has completed the final required payment of $135,000 to Xtra-Gold Resources Corp. (TSX: XTG) (OTCBB: XTGR) (PINKSHEETS: XTGR). This payment represents the last contractual obligation in the acquisition of clear title to the Edum Banso Gold Project exploration license in Ghana, Africa. The Company and Xtra-Gold will now finalize the necessary documentation with the Ministry of Lands and Natural Resources (MLNR) in Ghana to facilitate the transfer of the Edum Banso exploration license to Discovery Gold Ghana Limited, a wholly-owned subsidiary of the Company.
"This is a significant milestone for the Company, its partners, and its many shareholders," said Dean Huge, CFO of Norman Cay Development. "Making this final cash payment to Xtra-Gold solidifies our rights in Ghana and positions the Company and its partners to move forward with exploration and drilling to develop the Edum Banso Gold Project to its full potential."
The Edum Banso Gold Project is currently being developed by a joint-venture between Discovery Gold Ghana Limited (65%) and North Spring Resources Corp. (35%) (OTCBB: NSRS) (PINKSHEETS: NSRS). North Springs acquired their 35% interest in Edum Banso from Discovery Gold in exchange for $250,000 and 10,000,000 restricted North Springs common shares. North Springs must fund a multi-phase $1,000,000 work commitment in 2012 to maintain their full interest in the project. Planned exploration work includes additional geological mapping, prospecting, soil sampling, trenching, and a reverse-circulation (RC) drill program targeting 15-30 locations.
The Edum Banso concession covers 20.60 km2 (5,100 acres) located approximately 35 km (21 miles) northwest of city of Takoradi in the southeastern portion of Ghana's historic Ashanti Gold Belt. The concession is situated less than one mile from the border of the HBB Father Brown/Adoikrom open pit gold deposits currently being mined by Golden Star Resources. Golden Star expects to produce 180,000 oz. of gold and generate over $280 million in gross revenue per year from their HBB Father Brown/Adoikrom operations.
Previous exploration conducted by Newmont Gold (2004) and others at Edum Banso included extensive geophysical (aeromagnetic) interpretation, soil and stream sediment sampling (5,758 samples), trenching (319 m total - 214 channel samples), auger drilling (252 holes), and rock chips (81 samples). To date, four distinct mineralized gold zones have been identified over an area approximately 5 miles long by a quarter mile wide, including two southern zones sharing contact with the unique circular shaped Mpohor Complex geologic structure, potentially one of the largest known gold bearing synvolcanic mafic intrusives on the African continent. The same Mpohor Complex structure and contact zones host the HBB Father Brown/Adoikrom deposits to the southeast.
Further updates regarding the Edum Banso Gold Project and other Norman Cay business will be made as additional information becomes available.
About Norman Cay Development
Norman Cay Development, Inc. is an emerging U.S. based mineral exploration company offering shareholders the opportunity to participate in the ownership of high-potential international gold exploration and development projects. The Company's wholly-owned subsidiary, Discovery Gold Ghana Limited, holds an exclusive option with rights to explore and develop the Edum Banso Gold Project within the historic Ashanti Gold Belt in Ghana.
For further information regarding Norman Cay Development, Inc., contact:
LiveCall Investor Relations
Gerry Belanger, (855) 490-9700 (Toll-free)
E-mail: [email protected]
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Norman Cay Development, Inc. (the "Company") bases these forward-looking statements on current expectations and projections about future events, based on information currently available. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company has no mineral resource or reserve estimate for the Edum Banso Gold Project at this time and may not have sufficient funding to thoroughly explore, drill or develop its properties. The Company disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
SOURCE Norman Cay Development, Inc.