African Gold Group Inc reported that it has now closed its previously announced oversubscribed private placing, bringing in over C$5.1 million to advance its flagship Kobada gold project in Southern Mali and to "continue to pursue corporate options".
As reported on November 5, the resource group said it was upsizing the financing and today said it had issued 36,744,285 units at C$0.14 each to raise C$$5,144,200 gross.
Each unit consists of one share in the company and one-half of a share purchase warrant. Each warrant entitles the bearer to acquire an additional company share at an exercise price of C$0.25 until November 7, 2023.
If at any time after March 8, 2022, the shares trade at C$0.50 each or higher, on a volume-weighted adjusted basis, for ten consecutive days, African Gold will have the right to accelerate the expiry date of the warrants to 30 days after it announces it has elected to exercise the right.
READ: African Gold announces upsizing of previous non-brokered private placement to raise $5M for advancing flagship Kobada Gold Project
The company aims to build Africa’s next mid-tier gold producer and the flagship asset is Kobada, which is at an advanced stage, having completed a definitive feasibility study (DFS) this year and is targeting gold production of 100,000 ounces (oz) per year.
As well as the initial Kobada project, other exploration locations have been identified on the Kobada, Farada and Kobada Est concessions, offering potential for an increase in resource.
In October, the company reported a milestone, in that the Republic of Mali's Ministry of Environment, Sanitation and Sustainable Development had approved the environmental and social impact assessment (ESIA) for the Kobada project and had issued an updated environmental permit.
African Gold has expansive holdings in West Africa's prolific Birimian Greenstone Belt including more than 460 square kilometres (sq km) across Mali and Burkina Faso.
Contact the author at giles@proactiveinvestors.com