African Gold Group, Inc. (TSX-V: AGG) is pleased to announce that it has closed, on an oversubscribed basis, the second and final tranche of the previously announced C$2,000,000 non-brokered private placement financing of common shares for gross proceeds of C$684,210. Together with the closing of the first tranche of the Offering, the Company raised gross proceeds of C$2,184,210.
Pursuant to the Final Tranche, the Company issued 3,421,050 units of the Company at a price of C$0.20 per Unit for gross proceeds of C$684,210. 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 March 9, 2022.
In connection with the closing of the Final Tranche, the Company has paid aggregate finder’s fees of C$27,500 in cash. All securities issued under the Final Tranche are subject to a statutory hold period ending four months and one day from the closing date of the Final Tranche. The Company intends to use the proceeds of the Final Tranche for the advancement of the Kobada Gold Project and for general corporate purposes.
$3 MILLION PRIVATE PLACEMENT
Due to investor demand, the Company is pleased to announce that it intends to complete an additional non-brokered private placement financing of up to 15,000,000 units at a price of $0.20 per Unit for gross proceeds of up to C$3,000,000. Each March Unit will consist of one common share of the Company and one half of one common share purchase warrant, with each March Warrant entitling the holder to acquire one additional common share of the Company at an exercise price of C$0.25 for a period of 24 months from issuance.
Closing of the March Offering is expected to occur on or about April 10, 2020. 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 March Offering will be subject to a statutory hold period of four-months and one day. Completion of the March Offering is subject to a number of conditions, including without limitation, receipt of TSXV approval. The Company intends to use the proceeds of the March Offering to continue to develop its Kobada Project in Mali and for general corporate purposes.
The securities offered under the Offering and the March 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.
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We acknowledge the [financial] support of the Government of Canada.