African Gold Group intends to complete a best efforts non-brokered private placement financing of up to 20 million units for gross proceeds of up to $1 million. Proceeds will be used to continue to develop the Kobada Gold Project in Mali.
Each unit will consist of one common share of the company and one common share purchase warrant, entitling the holder to acquire one additional common share at an exercise price of $0.05 for a period of 24 months from issuance.
Closing of the offering is expected to occur on or about December 31, 2018.
Meantime, DRA Global has completed a gap analysis between current management’s goal of annually delivering 100,000 ounces of gold with the 2016 feasibility study of the project, which contemplated a 50,000 ounce per year processing plant.
As such, the company will now focus on upgrading the existing inferred mineral resource to the indicated category, exploration and alternative metallurgical processes.
African Gold also announces that the board of directors has appointed Andrew Cheatle as chief executive officer of the company.
He was previously vice president, exploration and has over 25 years of minerals industry experience as a professional geologist and mining executive.
Former roles include president and CEO of Unigold Inc, and executive director of the Prospectors and Developers Association of Canada (PDAC).
His career has spanned both major mining companies (Anglo American Corporation, Goldcorp) and the junior mining sector. He is also a non-executive director of Condor Gold plc, a Director of the Canada–Africa Chamber of Business, a director of QMX Gold Corporation and a director of Q-Gold Resources Ltd.
He is a graduate of the Royal School of Mines, Imperial College, London and holds an MBA.
Mr Cheatle replaces Stephan Theron, the former CEO of the company, who remains on the board of directors and has been appointed chairman.
New CEO Andrew Cheatle notes: “AGG is at a truly exciting juncture in its development of the Kobada project, not only in the re-imagined goal of being a 100,000 ounces per year gold producer, but also one with the reality of significant exploration and regional potential to build a new mid-tier West African gold company.
"I look forward to working with our highly experienced Board of Directors and staff to advance the company and deliver value to our shareholders.”