African Gold Group (AGG.V) has announced Declan Franzmann will assume the CEO role from Michael Nikiforuk who will become an executive director focusing on CSR and government relations. Franzmann brings a lot of experience to African Gold Group as he has more than two decades of experience in engineering, operating and corporate roles, including being a director for Lachlan Star (LSA.TO, ASX:LSA).
The company is also raising C$2.2M by issuing new shares at C$0.12 with ½ warrant attached which is valid for two years and each full warrant will be exercisable at C$0.18. This placement is necessary to continue the ground work at Kobada and to finish the feasibility study, which is expected to be completed in Q3 2014. We intend to participate in this placement as we expect this feasibility study to re-confirm the superior economics of the Kobada project, thanks to the very straightforward production process. The operation will very likely be downscaled compared to the PEA, as this will drive the capital expenditures down and should make it easier for the company to get the project financed.
Disclosure: The author holds a long position in African Gold Group and will participate in the private placement. Please see our disclaimer for current positions.
