Desmond-backed gold mine firm under US investigation

The African Gold Acquisition Corporation is being investigated by the US Department of Justice and US market regulator the SEC

Dermot Desmond: company backed by Irish businessman recently sacked its chief financial officer. Picture: Getty

African Gold Acquisition Corporation, a blank-cheque company backed by Dermot Desmond, is now under investigation by both the US Department of Justice and the SEC, the US market regulator.

The company, which was set up to buy gold mines, recently sacked Cooper Morgenthau, its chief financial officer, and told the New York Stock Exchange that it had uncovered a number of “improper withdrawals” from its operating bank accounts.

It said an internal investigation had found ...