African Gold Group (AGG.V) which owns the 3Moz Kobada project in Mali has closed a private placement, raising $1.5M by issuing 21.4M units at C$0.07 per unit. Each unit consists of one share and ½ of a warrant with a strike price of C$0.12 expiring in two years from now.
African Gold Group will use the funds for general corporate purposes and to fund the ongoing feasibility study and pilot plant at the Kobada project.
Unfortunately AGG got caught by the ‘coup’ in Mali and the downturn in gold, so a relatively large dilution by issuing more than 20M new shares was necessary to raise the capital needed to continue its development of the 2.8Moz Kobada project in Mali. Three directors of the company purchased in excess of 1.1M shares, adding some more skin to the game.
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Disclosure: The author holds a long position in African Gold Group. Please see our disclaimer for current positions.
