TORONTO, ONTARIO--(Marketwired - March 6, 2017) - African Gold Group, Inc. (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to announce that is has agreed to a private placement into the Company whereby Forbes & Manhattan Resources Inc. ("Forbes") and certain other investors who will subscribe to a private placement of units (the "Unit") at a price of $0.09 per Unit for gross proceeds of up to approximately $7.0 million (the "Private Placement"). The subscription price represents a premium of approximately 38.7% to the last trading price of AGG common shares on March 6, 2017.

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The following information is filed pursuant to the provisions listed above under the applicable securities legislation:

1. Name and address of the offeror:

Georges Cohen (the “Offeror”)

56, route de Vandoeuvres
Vandoeuvres, CH-1253 Suisse

2. The designation and number or principal amount of securities and the offeror’s security holding percentage in the class of securities of which the offeror acquired ownership or control in the transaction or occurrence giving rise to the reporting obligation, and whether it was ownership or control that was acquired in those circumstances:

The Offeror has acquired ownership and control of 25,270,000 units of Africa Gold Group, Inc. (the “Company”) under a private placement, with each unit consisting of one common share and one-half (½) common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company for a period of twenty-four (24) months at a price of: (i) $0.075 per common share for the first six (6) months and (ii) $0.10 per common share thereafter until the expiry date of the warrant. This acquisition represents 11.18% of the Company’s currently outstanding common shares, and 15.89% of the Company’s common shares on a partially diluted basis assuming full exercise of the warrants.

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Toronto, Canada - African Gold Group, Inc. (TSX V: AGG) ("AGG" or the "Company") is pleased to announce that it intends to complete a non-brokered private placement offering (the "Offering") to raise gross ­proceeds of CDN$1,289,821.85. The Offering will consist of 25,796,437 Units (the "Unit") at a price of $0.05 per Unit. Each Unit is comprised of one common share and one-half (1/2) of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one additional common share of AGG for a period of twenty-four (24) months at a price of: (i) $0.075 per common share for the first six (6) months and (ii) $0.10 per common share thereafter until the expiry date of the Warrant. No broker or finder fees will be payable in connection with the Offering.­

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African Gold Group, Inc. (TSX V: AGG) ("AGG" or the "Company") is pleased to announce the closing of a non-brokered private placement offering (the "Offering"). The Offering consisted of 33,165,006 Units (the "Unit") at a price of $0.05 per Unit for gross proceeds of $1,658,250.30. Each Unit is comprised of one common share and one-half (1/2) of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one additional common share of AGG for a period of twenty-four (24) months at a price of: (i) $0.075 per common share for the first six (6) months; and (ii) $0.10 per common share thereafter until the expiry date of January 14, 2017.

Four officers and directors of the Company, being Declan Franzmann, Marco Durante, David Brown and Jaimie MacPherson (the "Purchasing Insiders"), purchased an aggregate of 13% of the securities issued pursuant to the Offering. The Offering was considered and approved by the board of directors of the Company, with Declan Franzmann, Marco Durante and David Brown 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.

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African Gold Group, Inc. (TSX-V: AGG) ("AGG" or the "Company") is pleased to advise it has filed the Resource Update andPEA on SEDAR in accordance with National Instrument 43-101, on 23 December, 2014 for its 100%-owned Kobada gold deposit in Mali, West Africa ("Kobada" or the "Project")

The cash flow forecast for the final version of the PEA, filed on SEDAR, has been updated to provide the Project's financial metrics after the payment of royalties, taxes and dividends to the Government of Mali. Production schedules, gold production and all other physical parameter estimates that were presented in the November 25 press release have not changed in the final version of the PEA, filed on SEDAR.

As previously announced,the PEA envisions a relatively simple and low capital cost gravity concentration and concentrate leaching operation with an initial fifteen year mine life. Mining output is modeled at 1.6 million tonnes per annum.

PEA HIGHLIGHTS:

  • Cash flow attributable to AGG's 100% owned subsidiary, AGG Mali SARL, of US$204 million (~ CAD$237 million) after mining royalty (US$24.8 million), gold tax (US$22.3 million), company taxation (US$32.7 million), and dividends payable to the Malian Government (US$18.8 million – reflecting a 10% free carried interest);
  • Pre-tax NPV5% cash flow of US$172 million (~CAD200 million) and IRR of 62%;
  • Post-tax NPV5%cash flow of US$128 million (~CAD148 million) and IRR of 53%;
  • Total pre-production capital of US$46.6 million, including a contingency of US$6.1 million;
  • Cash costs of US$482 per Au ounce for the first two years of operations, with cash costs of US$694 per Au ounce, life of mine. All in sustaining costs (AISC) of USD 792 per Au ounce, life of mine;
  • Annual production, in the first two years of operation, exceeding 50,000 Au ounces. Average gold production of 44,000 Au ounces over 15 year life of mine;
  • Base case is stated assuming US$1,250 per ounce of gold as a long term metal price
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African Gold Group, Inc. ("AGG" or the "Company") announced today that it has closed the previously announced bought deal private placement offering (the "Offering"). AGG issued an aggregate of 10,000,000 units of the Company (the "Units") at a price of CDN$0.60 per Unit, for aggregate gross proceeds of CDN$6,000,000. The aggregate number of Units issued included 1,600,000 Units issued pursuant to the full exercise of the Underwriter's option granted to the Underwriter under the Offering. Each Unit is comprised of one common share and one-half of one common share purchase warrant of the Company (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of CDN$0.90 per common share for a period of 18 months (the "Expiry Date") following the closing of the Offering. Macquarie Capital Markets Canada Ltd. ("Macquarie" or the "Underwriter") acted as sole Underwriter in respect of the Offering. The Underwriter received a cash commission of 6.0% of the gross proceeds raised in the Offering and 800,000 compensation options (each a "Compensation Option"). Each Compensation Option entitles the Underwriter to purchase one Unit of the Company at a price of CDN$0.60 per Unit until the Expiry Date.

The net proceeds of the Offering are intended to be used to fund the continuing development of the Company's Kobada, Mali Project, the resumption of exploration at the Company's 456 sq km Asankrangwa, Ghana holdings, of which the north west quadrant (the Asuowunu concession) is on strike and contiguous with the recently discovered 3.5 million oz Essase gold deposit controlled by Keegan Resources, and for general working capital and corporate purposes.

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1,000,000 Oz Au THRESHOLD SURPASSED FROM 15% OF STRIKE AT KOBADA, MALI

TORONTO, CANADA, July 13, 2011 – African Gold Group, Inc., (“AGG” or the "Company”) is pleased to announce the results of a positive NI 43-101 compliant Preliminary Economic Assessment (the “PEA” or the "Study") that evaluates the potential of an open pit, bulk mining model, utilizing a gravity recovery process plant, at the Company’s Kobada (Mali) gold project. The consulting group Bumigeme Inc., located in Montreal, Quebec, was commissioned by AGG to complete the study.   This news release has been revised to clarify the resource disclosure and to include the required 43-101 "Cautionary Statements" in compliance with regulatory requirements.

The Study incorporates and includes drill data up to the end of December, 2010. There is no drill data from the 2011 campaign included in the Study. More specifically, the Study does not incorporate drill data for the northern extension holes that extend Zone 1 up to 2 kilometers north of the Zone 1 deposit, it does not incorporate the 2011 southern holes or the newly discovered Foroko North deposit, nor the newly discovered Termite Zone, the latter two are separate and distinct structures from Zone 1

Project Economics – Base Case

The PEA estimates an after-tax Net Present Value (NPV) of US$216.9 million from commencement of construction and an after-tax Internal Rate Of Return (IRR) of 90.57% using a base case of US$1,100 per ounce of gold and a discount rate of 5%.

The Kobada project base case is for processing 20,000 tonnes per day for a total of 7,000,000 tonnes per year in a gravity process plant that is projected to recover 87.9% of the gold contained in 41,750,000 tonnes of lateritic material assaying 0.64 g/t Au, for average annual production of 126,600 ounces of gold for the first five years of operation. The average annual operating cost is calculated to be US$8.27/t for the first five years of operation with a CAPEX of US$122,500,000. The project produces gold at the direct cost of US$470.90 per ounce. During years 4 and 5 of operations the CAPEX will be increased by US$2.9 million for the addition of a ball mill that will be required to process the sulphide resource. The average operating cost at year 6 will increase to US$8.73/t. Gold recovery and production in year 6 is projected to be 80.80% and 112,200 ozs Au, respectively.

Key highlights from the Study are as follows:

  • The Study demonstrates that the Kobada gold project is economically optimized by adopting bulk mining versus selective mining. The direct implications of bulk mining are demonstrated in a substantial increase in tonnage and recoverable gold but with an associated decrease in the average gold grade.

  • AGG Director and Qualified Persons, Mr. Pierre Lalande, P.Geo., has recommended that 100% of all material excavated between the hanging wall and footwall of the mineralized zone be processed in the gravimetric plant as lateritic deposits containing coarse free gold result in a strong “nugget effect”. It is this characteristic, due to weathering, that makes Kobada amenable to utilizing gravity for gold recovery. Mr. Lalande contends that the increase in sampling density of drilling during grade control of mined deposits in West Africa often turns much “in ore waste” of feasibility study estimates into incremental ore.

  • The inferred resources that are detailed in this study are only projected to a vertical depth of 160 meters versus the projected depth of 260 meters in AGG’s 43-101 compliant Initial Resources Estimate that was published in May of 2008. This amendment reflects AGG’s primary focus on the oxidized horizon of the deposit. Therefore, most of the volume of the sulphide resource that was included in the May, 2008 Initial Resources Estimate is not included in this Study.

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Report Title Date Function
Consolidated Financial Statements For the Years Ended December 2014 and 2013

April 30, 2015

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Management’s Discussion And Analysis Of Financial Condition And Results Of Operations For The Year Ended December 31, 2014

April 30, 2015

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Consolidated Financial Statements For the Years Ended December 2013 and 2012

2014

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Consolidated Financial Statements For the Years Ended December 2012 and 2011

2013

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Consolidated Financial Statements For the Years Ended December 2011 and 2010

2012

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Consolidated Financial Statements For the Years Ended December 2010 and 2009

2011

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Consolidated Financial Statements For the Years Ended December 2008 and 2007

June 30, 2009

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Annual Report 2007

 

April 23, 2007

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Annual Report 2005

 

June 30, 2006

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2004 Annual Report

 

December 31, 2004

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