African Gold Group, Inc., is pleased to announce that the private placement of up to 1,000,000 common shares in the capital of AGG, at $1.25 per common share, as detailed in the Company’s press release dated July 13, 2005, has closed and was oversubscribed.
The Company has issued 1,040,000 common shares of its capital, at $1.25 per common share, for gross proceeds of $1,300,000. The securities issued under the private placement are subject to a four month resale restriction that remains in effect until November 30, 2005. The financing has received conditional approval from the TSX-Venture Exchange.
The private placement was non-brokered, however, the Company has issued a finders fee in the amount of 5% of gross proceeds, equal to $65,000, plus 104,000 warrants representing 10% of the shares issued in this private placement. Each finders warrant entitles the holder to acquire one common share at $1.40 per share for a (24) twenty four month period, from the date of closing.
Proceeds from this placement will facilitate the continuation of work programs at the Company’s Ghana gold concessions, plus an immediate mobilization effort to undertake a 1,000 meter diamond drill program, that is intended to confirm or verify drill results previously generated by The BRGM and Cominor S.A., at the Company’s recently acquired Kobada concession in Mali, West Africa.
“Previous work, totaling approximately €5,000,000, of which a considerable percentage was directed to the exploration of the Kobada concession, has indicated some very encouraging results in both diamond and RC drill programs. In order to properly and fully report on those results, to an acceptable standard, AGG will be undertaking a confirmation of the historical database by way of diamond drilling some twinned holes, as well as, some deeper holes to gain a better understanding of the as yet unexplored bedrock geology of the Kobada trend. Drilling to date has reached depths of 125 vertical meters without completely penetrating the saprolite horizon or intersecting bedrock. This is an unusual situation but one that bodes well for demonstrating a low cost surface deposit, that will hopefully complement the deeper resource potential,”
CEO, Greg Hawkins, P. Geo.
African Gold Group, Inc. based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within the region of West Africa. The Company’s immediate focus is to systematically explore both surface, and in particular, subsurface targets that have been identified within the Company’s current portfolio of gold mineralized concessions.
Additional Information is available on www.sedar.com or at
AFRICAN GOLD GROUP INC.
151 Yonge St.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.