African Gold Group, Inc. is pleased to announce that it has entered into a transaction with respect to the sale of AGG Ghana Limited (AGG Ghana), the Company's 100% owned Ghanaian subsidiary. All of the Company's assets in Ghana are held in AGG Ghana.
The sale of the subsidiary achieves the Company's stated aim of monetizing inherent value from its non-core assets and provides non-dilutive funding, including for the final completion of the full Feasibility Study at AGG's Kobada Gold Project in Mali, expected this month. Moving forward, the Company's sole focus will be putting Kobada into production.
Divestment of AGG Ghana Limited
AGG has entered into a sale and purchase agreement with Star Goldfields Limited (SGF), a private Ghanaian company. SGF has agreed to purchase the shares in AGG Ghana for a total cash consideration of US$1,200,000.
The sale of AGG Ghana includes all of the Company's Ghanaian assets, including the 456 square kilometre Asankrangwa Tenements plus the separate Nyankumasi concession.
SGF has paid AGG US$200,000 as a non-refundable deposit on the transaction, which commits the parties to the completion of a share purchase agreement, subject to customary conditions, including regulatory approvals. On execution of the definitive share purchase agreement, SGF will pay a remaining US$1,000,000 as consideration for 100% of the share capital of AGG Ghana Limited. It is anticipated that the share purchase agreement will be completed within 60 days of this announcement.