TORONTO, ONTARIO--(Marketwired - April 25, 2017) - African Gold Group, Inc. (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to announce that it has completed the previously announced financing whereby certain strategic investors and certain insiders of AGG have subscribed to a private placement of 74,827,188 units (the "Units") at a subscription price of C$0.09 per Unit for aggregate gross proceeds of C$6,734,446.92. Each Unit consists of one common share and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of AGG at a price of $0.12 per share for a period of thirty-six (36) months from the date of closing.

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African Gold Group, Inc. (TSX-V: AGG) ("AGG" or the "Company") is pleased to announce the completion of the Feasibility Study for the Kobada Gold Project. The Study demonstrates the robust nature of the project, with an “All In Sustaining Costs” (“AISC”) of US$788 per ounce and free cash flow of US$122 million net of all capital expenditure, operating costs, royalties and taxation in Mali, at a gold price of US$1,200 per ounce.

The Feasibility Study establishes the maiden Mineral Reserve for the project, containing 511,000 ounces of gold within two oxide open pits. A body of comprehensive test work, undertaken as part of the study, confirms the project’s processing methodology and confirms the robust economic parameters established in the Preliminary Economic Assessment, published December 23, 2014.

The Company plans to use the Feasibility Study to support funding initiatives for the development of the Kobada Gold Project.

FEASIBILITY STUDY HIGHLIGHTS

  • Feasibility Study contemplated a mining and processing operation treating only oxide ore types.
  • Proved and Probable Reserve of 12.7 million tonnes at 1.25g/t Au, containing 511,000 ounces of gold;
  • Mining and processing supports gold production exceeding 50,000 ounces per annum over an eight year mine life;
  • Average cash costs of US$557 per ounce of gold produced;
  • All in sustaining cost (AISC) of US$788 per ounce produced;
  • Total cash flow of US$122 million net of all costs, royalties and taxes at a gold price of $1,200 per ounce;
  • Net present value at 5% discount rate (NPV5%) of US$86 million after taxes;
  • Internal rate of return (IRR) of 43% after taxes.
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Toronto, Ontario – African Gold Group, Inc. (TSX-V: AGG) ("AGG" or the "Company") is pleased to announce that it has entered into a transaction with respect to the sale of AGG Ghana Limited (AGG Ghana), the Company’s 100% owned Ghanaian subsidiary. All of the Company’s assets in Ghana are held in AGG Ghana.

The sale of the subsidiary achieves the Company’s stated aim of monetizing inherent value from its non-core assets and provides non-dilutive funding, including for the final completion of the full Feasibility Study at AGG’s Kobada Gold Project in Mali, expected this month. Moving forward, the Company’s sole focus will be putting Kobada into production.

Divestment of AGG Ghana Limited

AGG has entered into a sale and purchase agreement with Star Goldfields Limited (SGF), a private Ghanaian company. SGF has agreed to purchase the shares in AGG Ghana for a total cash consideration of US$1,200,000.

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African Gold Group, Inc. (TSX-V: AGG) ("AGG" or the "Company") is pleased to announce the update of the Mineral Resource and provide a general update of progress on the Feasibility Study for the Kobada Gold Project.

SUMMARY

Above a cutoff grade of 0.3g/t Au, the Measured and Indicated (M&I) Mineral Resource was estimated to be 35.4 million tonnes at 1.1 g/t gold, containing 1.21 million ounces of gold. The Measured and Indicated Mineral Resource is mostly unchanged from 2014 despite the inclusion of mining depletion from artisanal mining activity and the lower bulk density applied for the laterite resource. This is largely due to additional drilling allowing the classification of Measured and Indicated Resources from previously Inferred or unclassified resource.

The oxide ore types that comprise the M&I Mineral Resource total 18.0 million tonnes at 1.1 g/t Au containing 620,000 ounces of gold.

ADDITIONAL DRILLING

As announced in a press release dated August 05, 2015, the company completed 1,398 metres of drilling in May 2015. This drilling was included in the update of the mineral resource, although the primary purpose was the collection of geotechnical and metallurgical samples, rather than improving mineral resource size and confidence.

Significant intercepts from this drilling included:

  • 18.4m at 1.02 g/t Au from 24m in KBD15-128;
  • 11.6m at 1.22 g/t Au from 60m in KBD15-129;
  • 25.3 metres at 1.43 g/t Au from 22.7m in KBD15-132;
  • 16.5 metres at 1.99 g/t Au from 76m in KBD15-123;
  • 12.0 metres at 0.55 g/t Au from 107m in KBD15-123;
  • 19.0 metres at 3.26 g/t Au from 61m in KBD15-124;
  • 18.3 metres at 0.52 g/t Au from 57.8m in KBD15-131; and
  • 14.7 metres at 0.58 g/t Au from 80.3m in KBD15-131.
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(TSX-V: AGG) ("AGG" or the "Company") is pleased to announce the results of metallurgical test work and provide an update on the progress of the feasibility study.

METALLURGICAL UPDATE

The company completed additional metallurgical test work at Gekko Systems facilities in Ballarat and Bureau Veritas in Perth, Australia, as part of the Feasibility Study process. This work confirms the results established in test work completed in 2014. Overall metallurgical recovery of gold was found to be 80% using the flow sheet established in the previous work.

A 92 kg sample of ore, assaying 0.92 g/t, was initially washed (a process known as scrubbing) and then wet-screened over a 1.18mm screen. The screen oversize represents 20% of the mass, and contained 49% of the gold at a grade of 2.31 g/t. The screen undersize represented 80% of the feed, had a grade of 0.58 g/t. The screening process provided a significant upgrade of the oversize, which was then crushed to below 1.18mm, and combined with the gravity feed to the gravity concentration process.

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African Gold Group, Inc. (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to announce that it has completed a non-brokered private placement offering (the "Offering") raising gross proceeds of CDN$1,231,171.40. The Offering consisted of 24,623,428 Units (the "Unit") at a price of $0.05 per Unit. Each Unit is comprised of one common share and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of AGG at a price of $0.06 per share for a period of thirty-six (36) months from the date of closing.

Six officers and directors of the Company (the "Purchasing Insiders"), purchased an aggregate of 51% of the securities issued pursuant to the Offering. The Offering was considered and approved by the board of directors of the Company, with the directors who purchased Units under the Offering declaring a conflict and recusing themselves from voting on the Offering. There was no materially contrary view or abstention by any director approving the Offering. Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the purchase by the Purchasing Insiders was a "related party transaction" but the Company was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Offering.

Mr. Georges Cohen, AGG Director and lead investor in this round of financing noted, “I have been a Director and major shareholder of AGG for only a short period of time and can legitimately express my approval with AGG’s recent accomplishments.  At a time when a number of AGG’s peer group companies have been placed on “care and maintenance”, AGG continues its drive to production in a systematic and focused manner. Through accomplishments such as the recent granting of the mining license, the Kobada project is, in my view, significantly de-risked from an operational and investment perspective and AGG’s ability to advance the project at this time speaks to Kobada’s robustness, both in terms of the low capex, and simple mining and gold recovery process, which contribute directly to Kobada’s impressive projected IRR (Internal Rate of Return). As an experienced investor, who assesses business value regularly, it is my view that the Kobada gold project is exactly right for the times.”

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African Gold Group, Inc. (TSX VENTURE:AGG) ("AGG" or the "Company") announces that the TSX Venture Exchange (the "Exchange") has consented to the Company's application to extend the expiry date of certain of its outstanding common share purchase warrants (the "Warrants"). Consent was given to extend the term of 10,714,428 Warrants with an exercise price of $0.12 per common share and due to expire on September 4, 2015 by one year to September 4, 2016.

These Warrants were issued pursuant to a private placement of 21,428,856 units, which closed on September 4, 2013. For further information on the original issuance of the Warrants, please refer to the press release of the Company dated September 5, 2013 filed on SEDAR.

Warrantholders are advised that replacement Warrant certificates will not be issued and that the original Warrant certificates must be presented to the Company in order to effect the exercise or transfer of such Warrants.

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African Gold Group, Inc. ("AGG") announces that it has entered into an agreement to grant an employee of AGG 12,000 incentive stock options at the exercise price of $2.00 per share for a five (5) year term.

AGG, based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects situated along significant gold trends in Ghana, West Africa. The Company's immediate focus is to systematically explore both surface, and in particular, subsurface targets along two major gold trends: the Sefwi and Asankrangwa Gold Belts.

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African Gold Group, Inc. announces that it has entered into an agreement with a European consultant (the "Consultant") to provide AGG with corporate finance advice. A total of 150,000 options have been issued to the Consultant at the exercise price of $2.00 per share for a five (5) year term.

In addition to the options that have been issued to the Consultant, an insider of AGG has agreed to sell 300,000 shares (the "Escrowed Shares") to the Consultant which are subject to a TSX Venture Exchange (the "Exchange") imposed escrow. The Escrowed Shares are not eligible for release from escrow to the Consultant until late 2006 and mid 2007. This transaction has been approved by the Exchange.

AGG, based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects situated along significant gold trends in Ghana, West Africa. The Company's immediate focus is to systematically explore both surface, and in particular, sub-surface targets along two major gold trends: the Sefwi and Asankrangwa Gold Belts.

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African Gold Group, Inc., announced today that it has entered into an Earn-In Agreement with Columbia River Resources, Inc. ("Columbia River"), a US public company in which AGG holds approximately 69% of the outstanding common shares. Columbia River in turn holds the 108 sq. Km. Mankranho License gold concession located at the north-eastern end of the Sefwi Gold Belt in Ghana, contiguous to Newmont Mining Corporation's multi-million ounce Ahafo project.

Columbia River retained a geologist John N. M. Coates (B.Sc. Hons, M.Sc., D.I.C.), to provide an independent valuation of the Mankranho License to Columbia River and its independent director. Under the Terms of the Earn-In Agreement and based on the independent valuation, the Earn-In Agreement provides AGG with the right to earn a 51% interest in the Mankranho License by spending US$1,253,000 and further allows for the right to earn up to an additional 34%, to total an aggregate of an 85% earned interest, upon spending an additional US$1,000,000 on the property comprising the Mankranho License.

AGG, based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects situated along significant gold trends in Ghana, West Africa. The Company's immediate focus is to systematically explore both surface, and in particular, sub-surface targets along two major gold trends: the Sefwi and Asankrangwa Gold Belts.

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