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05.07.2012 Business & Finance

Cardero acted legally acquired Sheini Iron Ore concessions -CEO

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Accra, July 4, GNA - The Cardero Resources Corporation (CRC) has acted legally and with integrity in the acquisition of Sheini Hills Iron Ore concessions in Ghana.

Mr Michael Hunter, Chief Executive Officer (CEO) and President of CRC said: “Cardero acquired the concession right through a competitive bidding by the Minerals Commission of Ghana with three prospecting licences being awarded to the company submitting the winning bid.

“After winning the bid, Cardero, entered into three separate joint ventures with Emmaland Resources Resource Ghana Limited an indirect wholly-owned Ghanaian subsidiary,”

Mr Hunter in an interview with the Ghana News Agency on Wednesday in Accra refuted alleged underhand dealings in the acquisition of the concessions being circulated in some media outlets.

He said Cardero Ghana would have the right to earn a 100 per cent working interest in each prospecting licence, subject to a 10 per cent net profit interest to Emmaland and a 10 per cent fully carried interest to the Government.

Mr Hunter said that the company had put in place robust corporate governance and business integrity policies, to ensure that it conducted its activities with best practices and within the confines of the law.

He reacted to the recent assertion in some media outlets that the Royal Canadian Mounted Police (RCMP) has launched an investigation into how the company won the concessions after an unnamed third party made bribery and corruption charges against the company.

Mr Hunter said “We will cooperate with any law enforcement agencies both in Canada and Ghana.

“A couple of weeks ago, RCMP came to Cardero and notified us that an unnamed third party in Ghana had filed a complaint alleging some concern about how we conduct our business in Ghana”.

Mr Hunter explained that the company had nothing to hide and said: “We are launching our own independent review to affirm that Cardero acted in accordance with best business practices while it helped its joint venture partner at the project, Emmaland Resources Ghana Limited, won the right to explore and develop the project.

“We feel confident about the way we do business and about the partners we do business with… “We're happy to have an opportunity to demonstrate that to the RCMP, get this case closed and then continue to move on with the development of the asset.

“We would like to assure our shareholders to have confidence that this is a company that conducts its business with integrity and within the confines of the law.

“And that we will protect their rights to realise the value of this really great iron ore asset in Ghana”.

Meanwhile in an email correspondent with Ghana News Agency, on the investigation, Sergeant Greg Cox, Media Relations Officer at Ottawa Ontario said: “The RCMP does not generally confirm nor deny who or what may or may not be the subject of an investigation.

“Generally, only in the event that an investigation results in the laying of criminal charges, would the RCMP confirm its investigation, the nature of any charges laid and the identity of the individual (s) involved”.

The Sheini Hills Iron Ore concessions is situated in the eastern part of Ghana's Northern Region, close to the border with Togo and approximately 400 kilometres north of Ghana's capital city, Accra.

Cardero is still in the initial phases of drilling at Sheini Hills and the best intersection to date is 30.2 metres grading 45.6 per cent iron and the weighted average grade from all drillholes to date is 36.2 per cent.


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