African Gold Group Inc (CVE:AGG) (OTCMKTS:AGGFF) (FRA:3A61) said it has closed its previously-announced non-brokered private placement financing for gross proceeds of C$4,637,421.75.
The company noted that net proceeds from the oversubscribed offering will be used to continue exploration activities at its flagship Kobada Gold Project while targeting an increase in resources and reserves in the near term.
African Gold Group said certain directors and officers of the company purchased or acquired direction and control over a total of 1,166,667 units of the offering.
READ: African Gold Group has its sights on gold production while expanding the Kobada project resource
“The success of the drilling campaign to date where deeper oxides, additional mineralised zones outside of the current ore resource envelope, encouraging grades and confirmation of economic gold mineralisation within a new shear zone structure at our Gosso target has given us a significant amount of confidence in the exploration upside potential of Kobada,” African Gold Group CEO Danny Callow said in a statement.
He added: “The additional funds will be targeted towards updating our resources and reserves and focus on adding significant value to the project.”
The financing involved the issuance of 30,916,145 company units, at a price of C$0.15 per unit, with each unit consisting of one common share of the company and one half of a common share purchase warrant that entitles the holder to acquire one additional common share of the company at an exercise price of C$0.25 until June 24, 2023.
African Gold Group also announced that it will investigate the merits of a dual listing on the Australian Stock Exchange, as it believes this could provide a larger pool of investors to support the Kobada Gold Project.
African Gold Group is on track to become Africa’s next mid-tier gold producer, with the company targeting production of 100,000 gold ounces per year from its Kobada Gold Project in Mali, West Africa, by 2Q 2022.
The company has a landholding that encompasses more than 460 square kilometres (sq km) across Mali and Burkina Faso in West Africa`s prolific Birimian Greenstone Belt, while less than 15% of the identified shear zones in Kobada property have been drilled.
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