African Gold Group Announces a $2 Million Private Placement

FIRM COMMITMENTS RECEIVED WITH ANTICIPATED CLOSING DATE OF JANUARY 24, 2020

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TORONTO, Jan. 20, 2020 (GLOBE NEWSWIRE) -- African Gold Group, Inc. (TSX-V: AGG) (“AGG” or the “Company”) is pleased to announce that it has received firm commitments from several strategic investors to complete a non-brokered private placement financing of up to 10,000,000 units (a “Unit”) at a price of $0.20 per Unit for gross proceeds of up to $2,000,000.00 (the “Offering”). Each Unit will consist of one common share of the Company and one half of one common share purchase warrant (each whole warrant a “Warrant”), with each Warrant entitling the holder to acquire one additional common share of the Company at an exercise price of $0.25 for a period of 24 months from issuance.

“While the markets for junior gold companies have been challenging, we are very pleased to have received strong interest from strategic investors,” said Mr. Stan Bharti, Chairman of the Company. “We anticipate closing the Offering shortly and quickly deploying the proceeds on the ground at the Kobada Project to complete our planned drilling program and deliver a definitive feasibility study.”

Closing of the Offering is expected to occur on or about January 24, 2020. In connection with the Offering, a finder’s fee may be payable in line with the policies of the TSX Venture Exchange. All securities issued in connection with the Offering will be subject to a statutory hold period of four-months and one day. Completion of the Offering is subject to a number of conditions, including without limitation, receipt of TSXV approval.  The Company intends to use the proceeds of the Offering to continue to develop its Kobada Project in Mali and for general corporate purposes.

The Company would also like to announce that further to its press releases dated November 21, 2019 and December 31, 2019, it has cancelled its previously announced private placement financing of up to 14,285,714 units at a price of $0.35 per unit for gross proceeds of up to $5 million in light of market conditions.  The Company will continue to monitor market conditions to determine financing options available to it as it advances the Kobada Project.