African Gold Group, Inc said that it is upsizing its previously announced non-brokered private placement, raising gross proceeds of up to $5 million through the sales of up to 35,714,286 units at C$0.14 per unit.
The Toronto-based company said that it intends to use the net proceeds to advance its flagship Kobada Gold Project in Southern Mali and to continue to pursue corporate options.
READ: African Gold receives milestone environmental permit approval for its Kobada Gold Project in Mali
The mining exploration company noted that each unit will consist of one common share of the company and one half of one common share purchase warrant. Each warrant entitles 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.
The closing of the offering is expected on November 8, 2021, the statement said.
The company also said that it will be paying a finder’s fee, 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.
African Gold Group, an exploration and development company, is focused on building Africa’s next mid-tier gold producer. The company has a highly experienced board and management team with a proven track record in the African mining sector operating mines from development through to production.
AGG’s principal asset is the Kobada Project in southern Mali, which is in an advanced stage of development, having completed the 2020 definitive feasibility study (DFS), and is targeting gold production of 100,000 oz per annum. Besides, other exploration locations have been identified on the Kobada, Farada, and Kobada Est concessions, offering the potential for an increase in resources.
Contact Ritika at ritika@proactiveinvestors.com