African Gold Group, Inc. (TSX-V:AGG) has told investors it intends to seek a dual listing on the Australian Securities Exchange (ASX) and has received in-principle advice from ASX that it would be suitable for listing on the exchange.
While the final approval of the listing is subject to it meeting certain customary requirements of the ASX, the Toronto-based company said the receipt of the in-principle advice allows it to move forward with its plans for and preparation of a prospectus for the listing.
"Our decision to seek a dual listing on the ASX is a result of significant support from Australian investors into our Kobada Project in South-Western Mali,” the company’s CEO Danny Callow said in a statement. “We believe that a dual listing will unlock further opportunities through access to a broader pool of informed capital, and for AGG to unlock its full value for shareholders.”
READ: African Gold CEO Callow calls 2021 ‘transformative’ year as company expects accelerated growth in 2022 with its Kobada Gold project
Following the ASX listing, Callow said the company will focus on expanding its total 3.2 million ounce mineral resource along multiple highly prospective drill targets, and further enhancing its current definitive feasibility study which “shows attractive economics for a 100,000oz per annum gold project over the first 10 years of production”.
African Gold Group also announced it will strengthen its board of directors with the addition of Tim Kestell, an Australian domiciled, independent director well known in the investment community and very experienced in guiding companies through the process from developer to producer.
The company noted that Kestell is an accomplished executive with over 25 years of experience in the capital markets, including working for HSBC, Patersons Securities and Euroz Securities Limited. He played an instrumental role as a director and an investor in a number of companies in the mining sector, including Capricorn Metals and Emerald Resources NL, enabling the transition from explorer to producer stage, it added.
Additionally, after serving for almost two years and guiding the company through a critical stage of its strategic process, the company said non-executive chairman Scott Eldridge has made the decision to step down from the board to pursue other interests. Eldridge will continue as a consultant on an as-required basis and will maintain existing options awards to expiry. Deputy chairman Jan-Erik Back will step up to the chairman role, the company said.
"Over the past two and a half years we have spent a significant amount of time in restructuring the company,” Callow continued. “This has involved spending a significant amount of time in delivering an economically attractive definitive feasibility study on our flagship Kobada Project, as well as growing the mineral resource by 40% and the ore reserves by more than 140%. At the same time, the company has streamlined the board, significantly reduced corporate and overhead costs and positioned the company for the next stage of its growth strategy.”
Callow said the decision to appoint Kestell to the board, who is well known and respected in the Australian investor community will set the company on its trajectory to achieve its strategic goals.
“I would personally like to welcome Tim to the company and wish him well as he transitions into the new role,” Callow concluded. “Finally, on behalf of the company, I would like to thank our outgoing chairman, Mr Scott Eldridge for his unwavering support over the past two years guiding the structural corporate changes and wish him all the very best in his future endeavours."
The company also announced that it has granted a total of 1,446,666 stock options to certain directors under its stock option plan. The stock options vest immediately and may be exercised at a price of $0.10 per option for a period of five years from the date of grant.
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.
The company'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 ounces 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 the author at stephen.gunnion@proactiveinvestors.com