TORONTO, CANADA, October 10, 2012 – African Gold Group, Inc., (“AGG” or the “Company”) is pleased to announce that the Company has entered into an agreement to sell 100% of its Mankranho, Ghana concession to Newmont Ghana Gold Limited (“NGGL”).
Under the terms of the sale, NGGL will purchase AGG’s Mankranho concession for total consideration of US$4,000,000.
The 108 sq km Mankranho concession is located in the Brong Ahafo region of Ghana.
“The sale of Mankrnaho to NGGL represents a significant milestone for AGG, particularly in light of the current macroeconomic environment. The monetization of this asset represents the first step in unlocking the intrinsic value of the Company’s Ghanaian assets, which in turn facilitates a non-dilutive solution to funding the ongoing exercise of completing a full Feasibility Study at AGG’s Kobada, Mali gold project. Moving forward, our sole focus will be putting Kobada into production, as expeditiously as possible,” states AGG President, Michael A. Nikiforuk.
Sierra Partners LLC, headquartered in Denver, Colorado, acted as sole financial advisor to AGG on this transaction.
The closing of the transaction remains subject to standard closing conditions, including all required regulatory approvals.
African Gold Group, Inc., based in Toronto, Canada, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa
Additional Information is available on www.sedar.com or at
AFRICAN GOLD GROUP INC.
151 Yonge St.
Neither 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.
This press release includes certain “Forward-Looking Statements.” All statements, other than statements of historical fact included herein, including without limitation, statements regarding future plans and objectives of African Gold Group; and statements regarding the ability to develop and achieve production at Kobada are forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from African Gold Group’s expectations have been disclosed under the heading “Risk Factors” and elsewhere in African Gold Group’s documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities. African Gold Group disclaims any intention or obligation to update or revise any forward looking statements whether resulting from new information, future events or otherwise, except as required by applicable law.