Proceeds slated for exploration and development of Kobada Gold Project
By Devika Patel
Knoxville, Tenn., Dec. 3 - African Gold Group, Inc. said it has increased a private placement of units since it has been fully subscribed. The deal priced for C$12 million on Dec. 2 and has been increased to C$12.04 million.
The company will now sell 17.2 million units of one common share and one half-share warrant at C$0.70 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.
The deal will be conducted via a syndicate of underwriters led by TD Securities Inc. and including GMP Securities LP.
Settlement is expected on Dec. 17.
Proceeds will be used for exploration and development of 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$12.04 million
|
| Units: | 17.2 million
|
| Price: | C$0.70
|
| 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
|
| Upsized: | Dec. 3
|
| Settlement date: | Dec. 17
|
| Stock symbol: | TSX Venture: AGG
|
| Stock price: | C$0.76 at close Dec. 2
|
| Market capitalization: | C$56.86 million
|
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