African Gold Group Closes Oversubscribed C$5 Million Private Placement
09 November 2021 - 4:17AM
African Gold Group, Inc. (TSX-V: AGG, OTC: AGGFF, FRA: 3A61)
(“
AGG” or the “
Company”) is
pleased to announce that it has closed its previously announced C$5
million non-brokered private placement financing of Units (as
defined below) on an oversubscribed basis for gross proceeds of
C$$5,144,200.
Pursuant to the Offering, the Company issued
36,744,285 units of the Company (each a “Unit” and
collectively, the “Units”) at a price of C$0.14
per Unit. Each Unit consists of one common share of the Company and
one half of a common share purchase warrant (each whole common
share purchase warrant, a “Warrant”). Each Warrant
entitles the holder to acquire one additional common share of the
Company at an exercise price of $0.25 until November 7, 2023. If at
any time after March 8, 2022, the common shares of the Company
trade at $0.50 per common share or higher (on a volume weighted
adjusted basis) for a period of 10 consecutive days, the Company
will have the right to accelerate the expiry date of the Warrants
to the date that is 30 days after the Company issues a news release
announcing that it has elected to exercise this acceleration
right.
The Company intends to use the net proceeds of
the Offering to advance its flagship Kobada Gold Project (the
“Project” or “Kobada”) in
Southern Mali and to continue to pursue corporate options.
In connection with the closing of the Offering,
the Company has paid aggregate finder’s fees of $272,000 in cash
and 1,021,999 finder’s warrants (collectively, the
“Finder’s Warrants”) to certain finders. Each
Finder Warrant will entitle the holder thereof to purchase one
Common Share at a price of $0.25 for a period of 24 months from the
date of the closing of the Offering. All securities issued under
the Offering are subject to a statutory hold period ending on March
8, 2022.
About African Gold Group
African Gold Group is a TSX Venture Exchange
(TSX-V: AGG) listed exploration and development company with a
focus on building Africa’s next mid-tier gold producer. The Company
has a highly experienced board and management team with a proven
track record in the African mining sector operating mines from
development through to production. AGG’s principal asset is the
Kobada Project in southern Mali, which is in an advanced stage of
development having completed the 2021 DFS and is targeting gold
production of 100,000 oz per annum. As well as the initial Kobada
Gold Project, other exploration locations have been identified on
the Kobada, Farada and Kobada Est concessions, offering potential
for an increase in resource. For more information regarding African
Gold Group visit our website at www.africangoldgroup.com.
For more information:
Danny CallowPresident and Chief Executive Officer+
(27) 76 411 3803Danny.Callow@africangoldgroup.com |
Daniyal BaizakVice President, Corporate
Development +1 (647) 835
9617Daniyal.Baizak@africangoldgroup.com |
|
|
Scott EldridgeNon-Executive Chairman of the
Board+1 (604) 722 5381Scott.Eldridge@africangoldgroup.com |
Camarco (Financial PR)Gordon Poole / Nick Hennis
+44 (0) 20 3757 4997AfricanGoldGroup@camarco.co.uk |
|
|
Cautionary statements
This press release contains “forward-looking
information” within the meaning of applicable Canadian securities
legislation. Forward-looking information includes, but is not
limited to, statements regarding, the Offering, production
potential and economics of the Project, upside potential of the
Project, drilling and exploration plans of the Company, and
development timetable with respect the Project. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as “plans”, “expects” or “does not
expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “does not anticipate”, or
“believes”, or variations of such words and phrases or statements
that certain actions, events or results “may”, “could”, “would”,
“might” or “will be taken”, “occur” or “be achieved”.
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of AGG to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: receipt
of necessary approvals for the Offering and the Kobada Gold
Project; general business, economic, competitive, political and
social uncertainties; future prices of mineral prices; accidents,
labour disputes and shortages; available infrastructure and
supplies; the COVID-19 pandemic and other risks of the mining
industry. Although AGG has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking information. AGG does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the “U.S. Securities Act”) or any state securities laws
and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
NEITHER TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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