www.africanqueenmines.com
African Queen Mines Ltd. and its subsidiaries acquire, explore and develop mineral properties in areas of Africa deemed to have relatively high potential for mining success and relatively low political risk.
The Company is engaged in the acquisition, exploration and development of properties for the potential mining of gold, metals and diamonds in Africa, initially focusing on exploration for diamonds in Botswana and Namibia, and gold in Mozambique. The Company has approximately 5,500 sq. km. of contiguous diamond licenses in Botswana and 6,200 sq. km. in Namibia, and is exploring for gold and metals in Mozambique under agreements with other companies.
African Queen to raise up to C$3 mln in private placement to accelerate African gold projects
African Queen Mines Ltd (TSX: AQ) plans to raise up to C$3 million in a non-brokered placement and has earmarked the proceeds for accelerating work programs on its gold projects in Africa as well as for potential property acquisitions and working capital.
The company will offer a maximum of 5 million units to institutional and private investors at C$0.60 per unit, with a minimum subscription amount of C$25,000.
Each unit will consist of one common share and one half of one share purchase warrant. Each warrant entitles the subscriber to buy one African Queen share for a period of two years from the date of closing at an exercise price of C$0.80 per share.
The company may, in its discretion, elect to increase the size of the offering by up to 20 percent to meet additional demand.
African Queen is an exploratory resource company with diversified mineral properties in Southern and West Africa. It is exploring its properties in Mozambique and Ghana for gold and other metals and it is exploring its properties in Botswana and Namibia for diamonds.
The group in October announced it entered into an earn-in and joint venture agreement with Akan Exploration Ltd in relation to the Noyem-Nyafoman prospecting license in Ghana.
Simultaneously, the company had entered into an agreement with the Ghanaian subsidiary of Newmont Mining Corp (ASX, NYSE: NEM), under which Newmont is transferring the license directly to African Queen Ghana Gold Ltd, to be held in trust for the joint venture partners in accordance with the Akan agreement.
Under the terms of the agreement between African Queen and Newmont Gold, African Queen has agreed to pay Newmont a total of US$850,000 subject to development milestones. The first US$100,000 has already been paid. Newmont has agreed to transfer the license immediately upon approval of Ghana's Minister of Lands, Forestry and Mines. Newmont Gold retains a 2% Net Smelter Royalty on all production from the license.
Also in October African Queen reported assay results for a further 62 grab samples collected in the Phase 1 exploration program on its King Solomon project in Tete Province, Mozambique, are consistent with initial results reported in September and confirm the potential for a sizeable copper-gold-silver polymetallic regional system.
Adrican Queen is awaiting the results of additional trench and soil sampling over a number of identified targets. Exploration efforts are focused on two highly prospective targets, with a view toward commencing shallow scout drilling during November 2009: the Makombiti and Kazito targets.
Under an earn-in and joint venture agreement from July 2009 with Swiss-based Opti Metal Trading Ltd, African Queen can earn a 85 percent interest in the exploration license and related King Solomon project by funding prescribed stages from exploration through feasibility.
