African Gold Group Announces a $2 Million Private Placement
January 20 2020 - 8:00AM
African Gold Group, Inc. (TSX-V: AGG) (“
AGG” or
the “
Company”) is pleased to announce that it has
received firm commitments from several strategic investors to
complete a non-brokered private placement financing of up to
10,000,000 units (a “
Unit”) at a price of $0.20
per Unit for gross proceeds of up to $2,000,000.00 (the
“
Offering”). Each Unit will consist of one common
share of the Company and one half of one common share purchase
warrant (each whole warrant a “
Warrant”), with
each Warrant entitling the holder to acquire one additional common
share of the Company at an exercise price of $0.25 for a period of
24 months from issuance.
“While the markets for junior gold companies
have been challenging, we are very pleased to have received strong
interest from strategic investors,” said Mr. Stan Bharti, Chairman
of the Company. “We anticipate closing the Offering shortly and
quickly deploying the proceeds on the ground at the Kobada Project
to complete our planned drilling program and deliver a definitive
feasibility study.”
Closing of the Offering is expected to occur on
or about January 24, 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
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 TSXV
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.
The Company would also like to announce that
further to its press releases dated November 21, 2019 and December
31, 2019, it has cancelled its previously announced private
placement financing of up to 14,285,714 units at a price of $0.35
per unit for gross proceeds of up to $5 million in light of market
conditions. The Company will continue to monitor market
conditions to determine financing options available to it as it
advances the Kobada Project.
About African Gold Group
African Gold Group is a Canadian listed
exploration and development company on the TSXV (TSX V: AGG) with
its focus on developing a gold platform in West Africa. Its
principal asset is the Kobada Project in southern Mali. For more
information regarding African Gold Group visit our website at
www.africangoldgroup.com.
For further information please
contact:
Stan BhartiChairman(416) 861 2267
Forward-Looking StatementsThis
press release contains "forward looking information" within the
meaning of applicable Canadian securities legislation. Forward
looking information includes, but is not limited to, the intended
use of proceeds, closing conditions and timing and other matters
relating to the Offering, the Company’s development and exploration
plans for the Kobada project, the timeline for the completion of
the Phase 1 and Phase 2 drilling program and the definitive
feasibility study and other statements with respect to the future
plans or intentions of the Company. 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", “aims”,
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or state 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 the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: general
business, economic, competitive, geopolitical and social
uncertainties; the actual results of exploration activities;
regulatory risks; risks inherent in foreign operations; and other
risks of the mining industry. Although the Company 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. The Company 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 THE 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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