AMN - MALI: African Gold raising funds for Kobada

African Gold Group intends to raise up to C$5 million in a non-brokered private placement. The company intends to use the proceeds of the offering to continue to develop its Kobada Gold Project in Mali and for general corporate purposes.

This will involve the placement of up to 23,809,500 units at a price of 21 cents per unit. 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 of the company at an exercise price of 30 cents for a period of 24 months from issuance.

Closing of the offering is expected to occur on or about June 21, 2019.

African Gold Group is a Canadian listed exploration and development company on the TSX Venture Exchange with its focus on developing a gold platform in West Africa. Its principal asset is the Kobada project.

Earlier this month the company appointed Stan Bharti as the chairman of the board of directors and interim president and CEO.

Mr Bharti is a professional engineer, international financier and seasoned entrepreneur. He has more than 30 years of experience in business, finance, markets, and operations. He has amassed over $3 billion worth of investment capital for the companies that he has worked with.

Mr Bharti has been pivotal in acquiring, financing, restructuring and building dozens of established companies and bright start-ups throughout North America, South America, Africa and Australia.

He replaces Andrew Cheatle, who has been the president and CEO of the company for the past year. Mr Cheatle was instrumental in assisting the company with completing the gap analysis for the Kobada project and in restructuring the capital structure of the company.

Stan Bharti said: "I would like to thank Mr Cheatle for his leadership and contributions to the company during a time of difficult capital markets. The board and I wish Mr. Cheatle all the best in his new ventures."

Andrew Cheatle said: "It has been a pleasure to advance the company and its Kobada Gold Project to this point. With the current financing underway, the company will, upon completion of the financing, be well positioned to act upon the gap analysis to complete a feasibility study that supports a 100,000 ounces of gold per year project.

The company has also appointed Dr Andreas Rompel as vice-president exploration. "Dr Rompel is a renowned structural geologist whose skills and previous experience in the geology of West Africa will further enhance the company’s growth," Mr Cheatle said.

Dr Rompel is a seasoned exploration professional with three decades of mining and exploration experience in a wide range of roles from president & CEO to country manager and corporate development. He has also worked in a variety of commodities, including precious metals and base metals as well as coking coal and cobalt.

For more than a decade Dr Rompel evaluated capital projects within Anglo American and was on the board of Spectrem, an Anglo American company, as technical director. He has worked in many countries on several continents and has multi-linguistic skills.

The company has also appointed Kenny Choi as corporate secretary. Mr Choi is a corporate lawyer who is corporate secretary and legal consultant to various TSX and TSX Venture listed companies in the mining and technology industries.

www.africangoldgroup.com