December 16, 2009
African Gold Group, Inc. completed an underwritten private placement of 10,000,000 units, at a price of $0.60 per unit, for aggregate gross proceeds of $6,000,000. Each unit consisted of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one additional common share at an exercise price of $0.90 until June 16, 2011. The units were sold through Macquarie Capital Markets Canada Ltd. as sole underwriter. The net proceeds of the private placement are intended to be used to fund continued development of African Gold’s Kobada Project, the resumption of exploration in respect of African Gold’s Asankrangwa holdings in Ghana and for general working capital and corporate purposes.
Wildeboer Dellelce LLP acted for the sole underwriter in connection with the offering with a team that included Perry Dellelce, Sanjeev Patel, Luke Sawicki and Zahar Orlov.