TORONTO, ONTARIO--(Marketwire - Feb. 5, 2013) - African Gold Group, Inc., ("AGG" or the "Company") (TSX VENTURE:AGG) is pleased to announce that the Company has completed the closing of the sale of its Mankranho, Ghana concession to Newmont Ghana Gold Limited ("NGGL").
Under the terms of the sale, NGGL has purchased AGG's Mankranho concession for total consideration of US$4,000,000.
The 108 sq km Mankranho concession is located in the Brong Ahafo region of Ghana.
"The completion of the sale of Mankranho to NGGL represents a significant milestone for AGG. As stated in the Company's press release of October 10, 2012: the culmination of the monetization of this asset represents the first step in unlocking the intrinsic value of AGG's Ghanaian assets. Furthermore, the sale of the Mankranho asset facilitates a non-dilutive solution to funding the completion of AGG's ongoing Feasibility Study for its Kobada, Mali gold project. Moving forward, our sole focus will be putting Kobada into production as expeditiously as possible," states AGG President, Michael A. Nikiforuk.
Sierra Partners LLC, headquartered in Denver, Colorado, acted as sole financial advisor to AGG on this transaction.
The Company also announces that it has granted an aggregate of 3,580,000 incentive stock options to certain directors, officers and employees of AGG to purchase common shares of the Company. The incentive stock options are exercisable at $0.20 per common share for a period of five (5) years from the date of issuance, being February 5, 2018.
African Gold Group, Inc., based in Toronto, Canada, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa.
Additional Information is available on the Company's website at www.africangoldgroup.com and on www.sedar.com and through the Company's offices at: Sun Life Financial Tower, Suite 2518, 150 King St. West, Toronto, Canada M5H 1J9.
On Behalf of the Board:
Michael A. J. Nikiforuk, President, Director