Proceeds slated for exploration and development of Kobada Gold Project
By Devika Patel
Knoxville, Tenn., Dec. 2 - African Gold Group, Inc. said it arranged a private placement of units via a syndicate of underwriters led by TD Securities Inc. and including GMP Securities LP. The deal will raise C$12 million.
The company will sell the units of one common share and one half-share warrant at C$0.45 apiece. Each whole two-year warrant will be exercisable at C$1.00. The strike price reflects a 28.21% premium to the Dec. 1 closing share price of C$0.78.
Settlement is expected Dec. 17.
Proceeds will be used to explore and develop the company's Kobada, Mali, gold project and its Asankrangwa, Ghana, holdings.
African Gold is a gold exploration company based in Toronto.
| Issuer: | African Gold Group, Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$12 million
|
| Price: | C$0.45
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.00
|
| Agent: | TD Securities Inc. (lead), GMP Securities LP
|
| Pricing date: | Dec. 2
|
| Settlement date: | Dec. 17
|
| Stock symbol: | TSX Venture: AGG
|
| Stock price: | C$0.76 at close Dec. 2
|
| Market capitalization: | C$57.62 million
|
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