Ownership
Obuasi Property, Ghana
In November 2005, Pelangio acquired options on a major land position adjacent to AngloGold Ashanti's Obuasi gold mine in southwest Ghana, West Africa. The optioned property now comprises three land packages acquired from two private Ghanaian corporations. Each land package is subject to a 2% net smelter return and a 10% interest held by the government of Ghana. These land holdings, known as the Obuasi property, cover approximately 290 square kilometres and are located within the prolific 300-kilometre long Ashanti Gold Belt. The Obuasi property consists of three mineral concessions, the Meduma and Kyereboso 2 and 3 concessions.
On March 3, 2008, Pelangio made the final payments, totaling US$150,000 and 1,500,000 common shares, required to acquire a 51% interest in the Obuasi property.
To acquire the remaining 49% of the Obuasi property (subject to the Ghanaian government's 10% carried interest) Pelangio must pay a total of US$2.25 million and issue a total of six million common shares to the vendors. Pelangio has issued the six million common shares required and has paid US$1.5 million of the cash portion of the remaining payments. The final payment of US$750,000 will be made on or before June 19, 2011.