News,financing
African Gold arranges $5-million private placement
2019-11-21 17:02 ET - News Release
Mr. Stan Bharti reports
AFRICAN GOLD GROUP ANNOUNCES A $5 MILLION PRIVATE PLACEMENT
African Gold Group Inc. has arranged a non-brokered private placement financing of up to 14,285,714 units at a price of 35 cents per unit for gross proceeds of up to $5-million. Each unit will consist of one common share of the company and one-half of one common share purchase warrant, with each warrant entitling the holder to acquire one additional common share of the company at an exercise price of 50 cents for a period of 24 months from issuance.
Closing of the offering is expected to occur on or about Dec. 13, 2019. In connection with the offering, a finder's fee may be payable in line with the policies of the TSX Venture Exchange. All securities issued in connection with the offering will be subject to a statutory hold period of four months and one day. Completion of the offering is subject to a number of conditions, including, without limitation, receipt of TSX-V approval. The company intends to use the proceeds of the offering to continue to develop its Kobada project in Mali and for general corporate purposes.
"We are very excited with the support we have received from the shareholders of AGG," said Stan Bharti, the president and chief executive officer of the company. "With this new round of financing, the company would be well positioned to proceed with its near-term construction plans at the Kobada project."
About African Gold Group Inc.
African Gold Group is a Canadian listed exploration and development company on the TSX-V with its focus on developing a gold platform in West Africa. Its principal asset is the Kobada project in southern Mali.