Business
Xtra-Gold Responds to Erroneous Public Disclosure Made by Buccaneer Gold and Clarifies the Status of the Banso and Muoso Option
Toronto, Ontario--(Newsfile Corp. - February 22, 2016) - Xtra-Gold Resources Corp.  (T...
About this update from Xtra-gold Resources Corp.
[{"type":"text","content":"Xtra-Gold Responds to Erroneous Public Disclosure Made by Buccaneer Gold and Clarifies the Status of the Banso and Muoso OptionToronto, Ontario--(Newsfile Corp. - February 22, 2016) - Xtra-Gold Resources Corp. (TSX: XTG) (OTCQB: XTGRF) (\"Xtra-Gold\") The management of Xtra-Gold wishes to clarify certain erroneous public disclosures made by Buccaneer Gold Corp. (\"Buccaneer\") about its business affairs with Xtra-Gold in Buccaneer's filings made on Sedar.As has been previously disclosed by Xtra-Gold, on July 24, 2015, Buccaneer filed an action in the Ontario Superior Court of Justice against Xtra-Gold and another individual (the \"Action\"). In the Action, Buccaneer alleges that in July, 2010, Buccaneer and Xtra-Gold entered into a letter of intent (the \"LOI\") to option (the \"Option\") Xtra-Gold's Banso and Muoso prospecting licenses in Ghana leading to a joint venture between the parties. Buccaneer also alleges that pursuant to the said joint venture, Buccaneer acquired an immediate 55% undivided interest in the alluvial mining rights of Xtra-Gold's Banso and Muoso Concessions (the \"Concessions\") at the time the agreement was reached and paid $50,000 for those rights. The Action claims against the defendants damages for breach of contract and breach of fiduciary duty and for an accounting of profits from the sale of alluvial gold recovered from the Concessions. Erroneous Disclosure About Alleged Alluvial \"Immediate Interest\" In respect of the allegation in the Action by Buccaneer that it acquired an immediate 55% interest in the alluvial rights to the Concessions, Xtra-Gold has been unable to locate any record of such alluvial agreement or payment in respect thereof, and announced shortly after the Action was issued that it questioned the validity/existence of the same and that it was reviewing the circumstances of the previous disclosure made by Xtra-Gold in respect of an alleged agreement relating to alluvial rights to the Concessions. Xtra-Gold notes that at the time of the alleged transaction and subsequent public disclosures, Mr Paul Zyla was the CEO and a director of both Xtra-Gold and Buccaneer and in a position of conflict of interest.In Buccaneer's Management Discussion & Analysis made as of August 26, 2015 and filed on Sedar, Buccaneer makes the following disclosure: Erroneous Buccaneer Discl...