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African Gold closes oversubscribed IPO, drilling scheduled for February

The company plans to use the funds for its West African gold exploration as well as seeking out new prospective projects in the region.
African Gold closes oversubscribed IPO, drilling scheduled for February
The IPO closed on January 14

African Gold Limited (ASX:A1G) closed its oversubscribed $4.5-million initial public offering (IPO) this week, with the placement issuing shares at 20 cents each.

The company plans to explore for gold in Cote d’Ivoire and has the rights for two granted exploration permits and two exploration permit application areas.

Expert board

African mining expertise features strongly on African Gold’s board, with mining personality Tolga Kumova, as well as Steve Parsons and Evan Cranston, comprising the company’s directorship.

All three have substantial experience with African mining operations and currently hold 22.7% of the new company, which will dilute to 10% each once listed.

Unexplored gold project

Focus will be on the unexplored Agboville project which is 150 kilometres from Abidjan and near prospective ground held by Barrick (NYSE:GOLD) and Newcrest Mining (ASX:NCM).

Previous owner Golden Star Resources (TSE:GSC) had identified drill-ready targets in its exploration work, delineating a 20-kilometre anomaly with soil grades up to 4 g/t gold.

Substantial operational experience

Both Kumova and Cranston have been involved in the recent restart of zinc production at the Century mine in Queensland under New Century Resources Ltd (ASX:NCZ).

Kumova is the former managing director and founding shareholder of Syrah Resources Ltd (ASX:SYR) which recently began commercial production at its Balama Graphite Project in Mozambique.

Parsons was the managing director of Gryphon Minerals Limited (ASX:GRY), which was taken over by Teranga Gold Corporation (ASX:TGZ), and is currently the managing director of Bellevue Gold Ltd (ASX:BGL).

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