African Gold Group Closes First Tranche of Private Placement at $1.5 Million
January 31 2020 - 4:00PM
African Gold Group, Inc. (TSX-V: AGG) (“
AGG” or
the “
Company”) is pleased to announce that it has
closed its first tranche of a previously announced non-brokered
private placement financing of common shares (the
“
Offering”) for gross proceeds of C$1,500,000.00
(the “
First Tranche”).
Pursuant to the First Tranche, the Company
issued 7,500,000 units of the Company (each a
“Unit” and collectively, the
“Units”) 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 whole common share purchase warrant, a
“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 (“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 (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 more information:
Stan Bharti Chairman(416) 861 2267
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 intended use of proceeds and
other matters relating to the Offering and the closing of the First
Tranche. 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; general business, economic,
competitive, political and social uncertainties; future prices of
mineral prices; accidents, labour disputes and shortages 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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