African Gold Group, Inc. (TSX-V: AGG) is pleased to announce that it has closed its first tranche of a previously announced non-brokered private placement financing of common shares for gross proceeds of C$1,500,000.00.

Pursuant to the First Tranche, the Company issued 7,500,000 units of the Company at a price of C$0.20 per Unit for gross proceeds of C$1,500,000.00. Each Unit consists of one common share of the Company and one half of a common share purchase warrant.  Each Warrant will entitle the holder to acquire one additional Common Share of the Company at an exercise price of C$0.25 per Common Share until January 31, 2022.

In connection with the closing of the First Tranche, the Company has paid aggregate finder’s fees of $35,950 in cash and 182,275 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 First Tranche. All securities issued under the First Tranche are subject to a statutory hold period ending four months and one day from the closing date of the First Tranche.

The Company intends to use the proceeds of the First Tranche for the advancement of the Kobada Gold Project and for general corporate purposes.

The securities offered under the Offering have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About African Gold Group

African Gold Group is a Canadian listed exploration and development company on the TSXV with its focus on developing a gold platform in West Africa. Its principal asset is the Kobada Project in southern Mali.