The AIM-listed Irish mining company African Gold is at an advanced stage of discussions on a takeover project, chairman Dr John Teeling has told shareholders in the group's annual report.

African Gold has gold interests in Zimbabwe, which have suffered from the low price of gold and also the growing economic chaos in Zimbabwe. For the past two years, African Gold has been trying to find new ventures and has looked at projects in technology, telecoms, engineering, oil and gas and mining, but without success. Dr Teeling says that the group is currently looking at two natural resources ventures.