Azumah Resources (ASX:AZM) shares will trade higher after the Ghanaian Minister of Lands and Natural Resources granted two mining leases for its Wa Gold Project in Ghana.
The leases are for a term of 15 years and encompass the Kunche and Bepkong deposits, where Azumah’s proposed 1.2 million tonne per year gold plant will be sited, and the Julie deposit, 80 kilometres to the east.
Granting of the mining leases represents another milestone in de-risking and advancing Azumah’s Wa Gold Project to development ready status and planned production in 2016.
Combined with the provision of new grid power infrastructure and the issue of water extraction licences, the grant of the Mining Leases underscores the Ghana Government’s strong support for the project.
Importantly, the grant of the Mining Leases paves the way for Azumah to formally commence its application to the Ghana Environmental Protection Authority for an environmental permit.
As part of this process, Azumah is updating a previously lodged draft Environmental Impact Statement.
GR Engineering Services is managing a feasibility study for the project that is on-track for completion this year.
In late January, Azumah entered into an alliance with mining services company Ausdrill (ASX:ASL) whereby it will gain funding via a convertible note.
Ausdrill invested $2 million in Azumah via a two year unsecured converting note which Ausdrill may convert into Azumah shares at $0.05.
At the time, Azumah was trading just above $0.03.
And in November last year, whilst trading at $0.025, AZM completed a $1 million placement at $0.05 to Caitlyn Limited, a private investment company associated with Indian industrialist Mr Agnivesh Agarwal.
Agarwal is managing director of United Arab Emirates based gold refiner, Fujairah Gold FZE, in turn a wholly-owned subsidiary of the Indian mining conglomerate, Vedanta Resources (LON:VED).
