DENVER, Oct. 22, 2012 /PRNewswire/ -- Discovery Gold Corporation (OTCQB: DCGD) ("Discovery Gold" or the "Company") is pleased to announce that the Company's wholly-owned subsidiary, Discovery Gold Ghana Limited, has increased its interest in the Edum Banso Gold Project in the prolific gold producing Ashanti Gold Belt in Ghana from 70% to 95%.
Discovery Gold's President, Steve Flechner, stated that, "The Company's management and board of directors are extremely pleased to have been able to re-consolidate 95% ownership of the option for the Edum Banso Gold Project for the benefit of Discovery Gold's shareholders, while pursuing other avenues for short term exploration funding."
Pursuant to an earn-in agreement effective January 25, 2012, Discovery Gold Ghana Limited granted a 25% working interest in the Project to North Springs Resources Corp. in exchange for ten million shares of its stock (the "Shares"). The intention was to sell or borrow against the Shares in order to fund exploration of the Project. However, effective October 1, 2012, the market price of the Shares was less than the price required under the earn-in agreement, and therefore Discovery Gold has returned the Shares and reacquired its 25% interest in the Edum Banso Project. Discovery Gold also maintains the right to re-purchase half of the remaining 5% working interest not held by the Company.
Mr. Flechner added that, "The geologic consultants, with whom the company is planning its pre-drilling exploration work, returned last week after briefly visiting the project target sites in Ghana, and are now updating their specific recommendations to the Company for the anticipated pre-drilling work program."Discovery Gold anticipates that further details regarding exploration plans, permitting, financing, and work schedules for the Edum Banso Gold Project will be released shortly.