NEW YORK, April 9, 2013 /PRNewswire/ -- The World Sports Alliance Intergovernmental Organization is pleased to announce the signing of a Letter of Intent with Ghana Gold Corp. to grant the mineral exploration, production and commercialization rights to gold concessions with USD $5 Billion in recoverable gold in the Central African Republic ("CAR").
According to the Letter of Intent and Planned Transaction, the WSA-IGO, through WSA Global (the "WSA Integrator") will grant to Ghana Gold Corp. mineral exploration, production and commercialization rights to gold concessions in the Central African Republic to enable the WSA Integrator to provide the necessary means for the deployment of the WSA-IGO's socio-economic initiative within the WSA member state of the Central African Republic.
The mineral exploration, production and commercialization rights will be granted directly by the WSA-IGO in such a manner as to enable Ghana Gold Corp. to operate under the permits, agreements and approvals of the WSA-IGO, the whole under the umbrella offered by the Intergovernmental Organization, but within the Central African Republic. The mining rights to be acquired by Ghana Gold Corp. will relate to USD $5 Billion in recoverable gold.
According to the terms of the Letter of Intent, Ghana Gold Corp. will issue a controlling block of 500 million restricted common shares, a $250 million, 10-year corporate debenture carrying yearly compounded interest of 6% and the remittance of net smelting royalties of 2.5%. Ghana Gold Corp. will also be required to commit to a 10 year work program.Within the framework of this transaction and of the issuance of the 500 million restricted common shares, the WSA Integrator shall convey to the other WSA member states (the "Recipients"), a total of five percent (5%) of the shares issued in consideration of the mining rights. Thus, thirty (30) WSA member states will each receive 833,333 restricted common shares of the capital of Ghana Gold Corp. to be remitted to the WSA-Member State Development Funds created within the scope of the development of the WSA's Socio-Economic Initiative within the territory of each Recipient Member State.