AMN - MALI: African Gold Group appoints CEO

Stan Bharti has agreed to join African Gold Group (AGG) as chairman and chief executive officer on a permanent basis. Previously Mr Bharti was acting as interim chief executive officer.

Through his affiliation with Forbes & Manhattan Inc Mr Bharti has built an impressive track record of success in the gold sector over the past 15 years, including:

• Desert Sun Mining, Jacobina Mine in Brazil, starting with $5 million in seed capital and sold to Yamana Gold Inc for $580 million in 2006 (share price increased from $1.46/share to over $5.50/share);

• Avion Gold, acquired for $20 million in 2008 and sold to Endeavour for $389 million in 2012 (share price increased from $0.38/share to $0.88/share);

• Crocodile Gold acquired out of bankruptcy in 2009 for $40 million and sold for over $200 million to a private hedge fund in 2011 (share price increased from $0.25/share to $0.62/share); and

• Sulliden Gold, invested at $0.45/share in 2009 and sold at $1.12/share in 2014.

Mr Bharti successfully predicted the gold market and gold stocks run-up in the mid-1990s and again in 2003.

"I believe the gold sector and, in particular, gold stocks are going to have a run with indices and metal prices higher than during the last cycle," he said.

"Gold prices have strengthened over the past several months and I believe this is just the start of a strong gold market and junior gold stocks will outperform. It feels like we are in 2003 again, at the cusp of a great run in gold and gold stocks.

"African Gold Group has all the ingredients to become a successful gold producer and developer.

"The Kobada project, 100% owned by AGG and located in Southern Mali, is fully permitted with a feasibility study. With the current large resource covering less than 25% of the Kobada property, there is strong potential to expand the current resource.

"Mali is Africa's third-largest gold producer and has a stable political environment for the mining industry. Our goal is to build AGG into a mid-tier African gold producer within next two years." 

He also noted: "We have been in Mali and West Africa for many years. The Tabakoto mine, which was owned and operated by Avion Resources, was started by our team and sold to Endeavour Mining in 2012. The Tabakoto mine remains in operation today.

"We believe that the Kobada mine is more advanced than Tabakoto was when it was acquired, and, we believe, has excellent upside potential.

"I have always acquired undervalued assets in emerging markets. This gives our shareholders the best potential for positive returns.

"AGG fits in that category very well. With the recent injection of almost $3 million in equity capital, we are now ready to update the current feasibility study and aim to start construction in 2020."

Mr Bharti intends to leverage his track record of attracting top tier management and operational professionals, to build a strong team to support his efforts over the coming months.

He said: "Once the team is in place, we will be ready to rapidly take this asset to the next level in one of the most bullish gold environments I have seen in my long mining career."

www.africangoldgroup.com