African Gold Group Inc has told investors it plans to raise up to $3.5 million through a non-brokered private placement financing of up to 25 million units at $0.14 each.
The net proceeds of the offering will be used to advance its flagship Kobada project in southern Mali and to continue to pursue corporate options, the Africa-focused gold company said.
Each unit will consist of one common share of the company and one half of a common share purchase warrant, entitling the holder to acquire an additional share at an exercise price of $0.25 for 24 months from issuance, the company said.
READ: African Gold Group eyes potential resource increase as its Kobada-Est exploration permit is renewed
If at any time after four months and one day from the closing of the offering its shares trade at $0.50 or higher for 10 consecutive days, the company noted that it will have the right to accelerate the expiry date of the warrants. The offer is expected to close on or about November 5, 2021, and a finder’s fee may be payable in line with the policies of the TSX Venture Exchange, it added.
The company also told shareholders that John Begeman and Hon. Pierre Pettigrew have resigned from its board of directors but will continue as consultants on an as-required basis and will maintain their existing options awards to expiry.
“I would like to thank John and Pierre for their contributions to the company over the last few years,” African Gold CEO Danny Callow said in a statement. “Both John and Pierre have been valuable members of the Board and I wish them well in their future endeavours.”
African Gold Group is an exploration and development company with a focus on building Africa’s next mid-tier gold producer. Its principal asset is the Kobada project in southern Mali, which is in an advanced stage of development and is targeting gold production of 100,000 ounces a year.
As well as the initial Kobada gold project, other exploration locations have been identified on the Kobada, Farada and Kobada Est concessions, offering potential for an increase in resource.
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