JOHANNESBURG, Nov 16 (Reuters) – South African minerals explorer Barnato Exploration Ltd (Barnex) said on Thursday the government of Ghana was seeking to abrogate the company’s mining rights in the West African country.
Barnex was negotiating the sale of its gold mining assets in Ghana, specifically a 90 percent interest in subsidiary Barnex Prestea Ltd to Denver-based Golden Star Resources (AMEX:GSR – news).
“Barnex has now been advised by the Ghanian government that it is seeking to abrogate the company’s mining and related rights in that country,” the company said in statement.
It said the government had begun discussions with the company regarding compensation.
Golden Star said on November 6 that it had agreed to extend the deadline for a definitive agreement with Barnex until November 17.
The Prestea gold project is located immediately south of the Bogoso mine, in which Golden Star acquired a 70 percent interest in 1999.
Between 1995 and 1999, Barnex invested approximately $22 million in acquisition payments and exploration and feasibility study costs.
