SOURCE: African Gold Group, Inc.

July 13, 2005 11:12 ET

AGG Mobilizing to Commence Drilling Kobada Concession in Mali, West Africa

Private Placement of Up to 1 Million Shares

TORONTO -- (MARKET WIRE) -- July 13, 2005 -- African Gold Group, Inc., (TSX-V: AGG) is pleased to announce the terms of a private placement of up to 1,000,000 common shares in the capital of AGG at $1.25 per common share for gross proceeds, if fully subscribed, of $1,250,000 to AGG. The securities issued under the private placement are subject to a four month resale restriction and the entire placement is subject to TSX Venture Exchange approval.

Proceeds from this placement will address general working capital requirements, the continuation of work programs at the Company's Ghana gold concessions, plus an immediate mobilization effort to undertake a 1,000 meter diamond drill program, that is intended to confirm or verify drill results previously generated by The BRGM and Cominor S.A., at the Company's recently acquired Kobada concession in Mali, West Africa.

"Previous work, totaling approximately (EUR) 5,000,000, of which a considerable percentage was directed to the exploration of the Kobada concession, has indicated some very encouraging results in both diamond and RC drill programs. In order to properly and fully report on those results, to an acceptable standard, AGG will be undertaking a confirmation of the historical database by way of diamond drilling some twinned holes, as well as some deeper holes, to gain a better understanding of the as yet unexplored bedrock geology of the Kobada trend. Drilling to date has reached depths of 125 vertical meters without completely penetrating the saprolite horizon or intersecting bedrock. This is an unusual situation but one that bodes well for demonstrating a low cost surface deposit, that will hopefully complement the deeper resource potential," states CEO, Greg Hawkins, P. Geo.

African Gold Group, Inc. based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within the region of West Africa. The Company's immediate focus is to systematically explore both surface, and in particular, subsurface targets that have been identified within the Company's current portfolio of gold mineralized concessions.

On Behalf of the Board of Directors:
Michael A. J. Nikiforuk
President, Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • For Further Information Please Contact:
    African Gold Group, Inc.
    Michael A. Nikiforuk
    Corporate Development Officer, Director
    (416) 572-2225
    Email Contact