SOURCE: African Gold Group, Inc.

March 20, 2006 08:00 ET

Private Placement of up to 4 Million Shares

TORONTO -- (MARKET WIRE) -- March 20, 2006 -- African Gold Group, Inc. (TSX-V: AGG) ("AGG") is pleased to announce the terms of a private placement of up to 4,000,000 common shares in the capital of AGG at $2.00 per common share for gross proceeds, if fully subscribed, of $8,000,000 to AGG. The common shares issued under the private placement are subject to a four-month resale restriction and the entire placement is subject to TSX Venture Exchange approval.

AGG will pay a finder's fee of 5% of the gross proceeds from the common shares subscribed for under the offering, and issue finder's warrants to acquire 10% of the common shares issued. Each finder's warrant is exercisable at $2.25 to acquire a common share of AGG for two years from the closing of the offering.

Proceeds from this placement will address general working capital requirements and the continuation of work programs at AGG's Ghana and Mail gold concessions that will include the resumption of diamond drilling at Kobada, Mali and Mankranho, Ghana and the initiation of diamond drilling at Nyankumasi, Ghana.

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 AGG's immediate focus is to systematically explore both surface, and in particular, subsurface targets that have been identified within the AGG's current portfolio of gold mineralized concessions.

On Behalf of the Board of Directors:
Michael A. J. Nikiforuk
President, Director
(416) 572-2225
info@africangoldgroup.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Contact:
    Michael A. J. Nikiforuk
    President, Director
    (416) 572-2225
    Email Contact