African Gold is on the verge of buying a block in Ghana's Ashanti gold belt for $4 million (€3.33 million) and it is understood that it is about to switch from its current advisers to a high-profile London broker.

Contrary to reports in the British media at the weekend, the company's chairman, Mr John Teeling, is not going to step aside from the job this week.

A UK newspaper reported that former Minorco boss, Mr Hank Slack, an African Gold shareholder, was going to replace him. It is understood that Mr Teeling will remain as chairman for the time being. The company said it would keep the make-up of its board "under review".

It announced yesterday that it was close to completing due diligence on the Konongo gold mining lease, which covers 135 square miles of the Ashanti gold belt in Ghana.

African Gold announced in January that it had acquired an option to purchase the property for $4 million. It began its due diligence at that point.

The company said yesterday that it expected to make an announcement about the deal shortly. It is understood that it will confirm that the purchase is going ahead.

African Gold is also expected to move brokers, from its current adviser, Rowan Dartington in Bristol, to Canaccord in London. The latter is a high-profile firm that has developed expertise in mining and exploration.

In December African Gold signalled that it would develop itself as a London-based explorer. It brought investors with experience in exploration and mining on board, including Mr Slack. He became a non-executive director, along with JO Hambro Investments director, Mr John Andersen, and First Africa chairman, Mr Oliver Baring.