TORONTO, ONTARIO--(Marketwired - June 21, 2017) - African Gold Group, Inc. (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to announce that it has completed the acquisition of all of the issued and outstanding shares of 2515232 Ontario Inc. ("PrivateCo") (the "Transaction") which owns an option to acquire the Madougou gold project (the "Madougou Project"). The Transaction was previously announced on April 25, 2017.

Summary of the Madougou Project

Mid-stage exploration project in mining favorable jurisdiction in West Africa
Significant land package of 182km2, located in greenstone belt that hosts several producing gold mines
Significant historical holes drilled, with near surface grades of:
     
  56m @ 1.56g/t Au from 94m in DORC02
  6m @ 3.4 g/t Au from 6m in DORC034
  11m @ 2.91 g/t Au from 60m in GSRC00, including 1m @ 247 g/t Au from 14m
  12m @ 3.4 g/t Au from 34m in GSAC065
  10m @ 4.175 g/t Au from 18m in GSAC074
  14m @ 4.76 g/t Au from 8m in SO-1066
  10m @ 4.2 g/t Au from 37m in DGAC002, including 4m @ 10.7 g/t
  10m @ 1.5 g/t Au from 24m in DGAC050
  8m @ 20.86 g/t Au from 90m in SO-47
  20m @ 2.01 g/t Au from 36m in NBAC023
  14m @ 7.72 g/t Au from 40m in NBAC085
  15m @ 3.87 g/t Au from 40m in NBAC095

Stephan Theron, Chief Executive Officer of the Company, commented: "The Madougou Project is in a very well understood area of the Birimian Greenstone in northern Burkina Faso, with Endeavour Mining's Karma Project some 60km away and other operating mines within 100km in several directions. AGG plans to organize the various work programs on Madougou in an effort to establishing a maiden resource on the concession within 12 months, or sooner. In addition, the Company will continue to develop our near term producing and flagship asset in Mali, the Kobada Gold Project, whilst the Madougou Project adds an exciting growth project to our existing gold portfolio."

The Madougou Project is a mid-stage exploration project, located in the north-western region of Burkina Faso. The project has been extensively explored, with both ground and airborne geophysical surveys conducted, and over 20,000m of RC drilling completed on the 182km2 land package. Madougou is in a mining favourable jurisdiction within West Africa, and is contained in a regional mineralised area of the greenstone belt within Burkina Faso, with several gold producing operations. AGG view the Madougou Project as a highly strategic asset, with tremendous potential to add significant value to the Company.

See Appendix 1.0 for Project / Property Location: http://media3.marketwire.com/docs/agg0621appendix.pdf.

These historical drill results, in addition to the historical geophysical work that has been conducted, will be the platform whereby AGG will be remodelling the existing data sets to identify new drilling targets so as it can formulate a comprehensive drill program for 2017.

Summary of the Transaction

Pursuant to the share purchase agreement dated June 21, 2017 (the "SPA") between AGG and the shareholders of PrivateCo, AGG acquired all of the issued and outstanding shares of PrivateCo. AGG issued an aggregate of 33,333,333 common shares to the shareholders of PrivateCo as consideration.

PrivateCo is party to an option agreement with TEMFOR s.a.r.l. ("TEMFOR") providing PrivateCo with the option (the "Option") to acquire from TEMFOR the Madougou Project.

Pursuant to the option agreement, PrivateCo can exercise the Option as follows:

  • In order to acquire an initial 10% interest in the Madougou Project, PrivateCo must pay USD$80,000 to TEMFOR on or before such date that the exploration permit for the Madougou Project is transferred to a newly incorporated Burkina Faso company (the "First Option");
  • In order to acquire an additional 41% interest in the Madougou Project, PrivateCo must (i) pay USD$300,000 to TEMFOR, and (ii) complete a National Instrument 43-101 ("NI 43-101") compliant technical report that contains an inferred mineral resource, within 12 months of the exercise of the First Option (the "Second Option");
  • In order to acquire an additional 24% interest in the Madougou Project, PrivateCo must (i) pay USD$300,000 to TEMFOR, and (ii) complete a NI 43-101 compliant technical report that contains an indicated mineral resource, within 12 months of the exercise of the Second Option; and
  • In order to acquire the remaining 25% interest in the Madougou Project, PrivateCo must (i) fund any and all expenditures related to the Madougou Project, and (ii) complete a NI 43-101 compliant feasibility study which could reasonably serve as the basis for a final decision by an internationally recognized financial institution to finance the development of a mining project (the "Fourth Option").

If PrivateCo exercises the Fourth Option and acquires a 100% interest in in the Madougou Project, PrivateCo shall grant to TEMFOR a 1% net smelter returns royalty over production from the Madougou Project.

The Transaction is an arm's length transaction for AGG. No finder's fees were paid in connection with the Transaction.

Kobada Gold Project

African Gold Group is currently reviewing the existing feasibility study of the Kobada Gold Project in an effort to optimise the existing Mineral Reserve and Resource estimates, relative to a potential phased approach of a larger Phase 1 production profile.

About African Gold Group

African Gold Group is a Canadian exploration and development company with its focus on West Africa. African Gold Group is focused on the development of the Kobada Gold Project in Mali, a low capital and operating cost gold project with potential to produce more than 50,000 ounces of gold per annum. For more information regarding African Gold Group visit our website at www.africangoldgroup.com.

Qualified Person

The technical and scientific contents of this press release have been prepared under the supervision of and have been reviewed and approved by Cesare Morelli B.Sc. (Pr.Sci.Nat.) who is a Qualified Person as defined by NI 43-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact included herein, including without limitation, statements regarding future plans and objectives of African Gold Group; statements regarding the Madougou Project; statements regarding the Company's ability to exercise the Option; statements regarding the granting of stock options; and statements regarding the ability to develop and achieve production at Kobada are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from African Gold Group's expectations have been disclosed under the heading "Risk Factors" and elsewhere in African Gold Group's documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities. African Gold Group disclaims any intention or obligation to update or revise any forward looking statements whether resulting from new information, future events or otherwise, except as required by applicable law.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

(Africa Mining Intelligence - June 20, 2017) Indian-Canadian tycoon Stan Bharti is preparing an offensive to transform Canadian junior African Gold Group Inc (AGG) into a major player on the West African gold scene. Until now, AGG had only explored gold at its Kobada project in Mali. Bharti’s recent move has been to quietly set up a small VIP mining consortium, via his Toronto-based private merchant bank Forbes & Manhattan (F&M).

Bharti and his golden boys. In late April, the billionaire picked up 40% of AGG’s capital for $7 million and is preparing to finalise his acquisition of the Madougou gold project in northwest Burkina Faso before July. To finance the project, which had been developed by Ampella Mining in the past, Bharti discreetly incorporated the obscurely named 2516232 Ontario Inc in Canada. This structure, which will inject $3 million into the Burkinabe project, has more than a dozen shareholders, all with a background in mining. They include, Greek billionaire Adonis Pouroulis, founder of Petra Diamonds and developer of Guinean bauxite project Bel Air owned by Alufer Mining (AMI 385), as well as Ghanaian Sam Jonah, former CEO of AngloGold Ashanti. Jonah sits at the head of investment firm Jonah Capital and is well versed in lucrative financial operations. In the 2000s, he invested in Moto Goldmines, which was sold to Randgold Resources and AngloGold in 2009. He also placed a stake in mining junior UraMin, which was sold to Areva in 2007 for $2.5 billion ( AMI 321). 2516232 Ontario Inc’s is also steered by members of Bharti’s inner circle: his son Julian Bharti, CEO of mining investment fund Delano Capital, and Peter McCague, legal counsel of F&M.

Before Bharti popped onto the scene, billionaire Georges Cohen was AGG’s largest shareholder and has stayed on as a member of the board. The French national was the former CEO of IT services group Capgemini and currently chairs Robex Gold, a Canadian concern that operates Malian gold mine Nampala. Cohen still has a 12% stake in AGG ( AMI 392).

Conquering the West. Bharti’s plans for AGG stretch beyond the borders of Mali and Burkina Faso. He has placed sector veteran Brett Richards behind the wheel to help steer the company’s expansion into West Africa. Between 2012 and 2015, Richards was CEO of Octea, the diamond affiliate of Beny Steinmetz Group Resources (BSGR) active in Sierra Leone. Along with AGG shareholders, Brett Richards will assess opportunities for investing productive gold mines in the region. These new acquisitions would give AGG the revenue it needs to develop its exploration of Kobada and Madougou.

Among assets currently marketed, AGG has already pinpointed Ivorian Bonikro mine exploited by Australia’s Newcrest Mining, Inata in Burkina Faso, developed by British firm Avocet Mining, as well as Nzema (Ghana) and Tabakoto (Mali) owned by Endeavour Mining.

Stan Bharti’s realm. Bharti trained as a mining engineer in Moscow. Though he has a large international mining portfolio, he likes to fly under the radar. There are however a network of celebrities that sit on the advisory council of his fund F&M, including American TV personality Larry King and Canada’s former minister of international trade, Pierre Pettigrew. Like his brother Julian, Bharti’s other son, Rene Bharti, has been given a lead role at F&M. Rene was on the board of Allana Potash Corp from 2010 to 2012. Allana manages a potash project in Ethiopia. Rene Bharti also founded ARHT Media, a specialist in human holograms, alongside famous Canadian-American crooner Paul Anka.

(The Northern Miner - June 16, 2017) As part of a private placement in March, Forbes & Manhattan Resources Inc., along with several other investors, including company insiders, took a 17% stake in a junior exploration company with a gold project in Mali near the border with Guinea called African Gold Group (TSXV: AGG).

Forbes also appointed Brett Richards, a dealmaker with a 10-year track record in Africa, as the junior’s president and chief operating officer. Richards, along with four former colleagues from Kinross Gold (TSX: K; NYSE: KGC), were the team at Katanga Mining (TSX: KAT) that restarted the Kamoto project, now an underground copper-cobalt mine, in the Democratic Republic of the Congo.

Richards, a mechanical engineer with an MBA from Cornell University’s Johnson School of Business, also built the Inata gold project in Burkina Faso during his tenure as CEO at Avocet Mining (LON: AVM); completed and operated the Octea diamond project in Sierra Leone, now the largest diamond producer in West Africa, as CEO of privately held Oceta Ltd.; and built Renew Resources in Liberia, which controls the largest tropical hardwood concession in Africa. He also served as CEO of Roxgold (TSX: ROXG; US-OTC: ROGFF) through a proxy battle and corporate transition, and recently finished a platinum project in South Africa for a private company called African Thunder Platinum.

Now he says it’s time to refocus on building a gold company in West Africa, and African Gold Group is a good place to start. The junior’s Kobada gold project, 120 km southwest of Bamako, already has a proven and probable reserves of 500,000 oz. gold (12.7 million tonnes at 1.25 grams god per tonne) and more than 2 million oz. gold in the measured, indicated and inferred resource categories (a combined 68.2 million tonnes at roughly 1.05 grams gold). That totals 2.75 million oz. gold in all reserve and resource categories.

A second gold project called Madougou in Burkina Faso also shows potential.

African Gold Group completed a feasibility study on Kobada early last year that envisioned treating only oxide ore in two pits, which would produce 50,000 oz. gold over an eight-year mine life at cash costs of US$557 per oz. and all-in sustaining costs (AISCs) of US$788 per ounce.

But the previous management team were constrained by poor markets and Richards says it’s a much better environment now to build a project on a larger scale.

“African Gold Group put together the 2016 feasibility study on a scope that they felt they could finance, at a time in the market when project financing and the equity capital markets were virtually closed to preproduction junior mining companies,” Richards says in an interview. “There simply wasn’t capital available to AGG in the market to drill out the property extensively in an effort to understand the potential size of the resource.”

The problem is that it’s difficult for institutional investors to get excited about such a small production profile, he says, because small projects deliver a fraction of the economics while assuming all of the same risks as a larger producer in the same jurisdiction.

Richards plans to review the resources and data sets at Kobada, take a closer look at the local workings over the entire land package and see what will be needed to re-scope the project. And if it can be a larger project, what will the company need to do to demonstrate that a larger production profile is economically accessible and makes sense.

“We have to look at Kobada with no capital constraints to optimize the size of the oxide resource and the mineability of the oxide reserve and resource,” he says. “We need to look laterally, versus looking deeper. We want to keep it simple, and understand the overall quantum we are dealing with down through the saprolite to 120 metres to 160 metres, but over a larger area.”

If that hypothesis proves correct, he says, Kobada could evolve as a series of long and fairly shallow pits along strike and in the parallel sheer zones to the main structure. By doing it that way, the company could have a low strip ratio, keep operating and power costs low, and preserve the sulphides at depth for a possible third-phase expansion depending on future gold prices.

“We feel that if the oxides prove to be of similar nature and consistency throughout the land package we will be able to justify and substantiate a much larger production profile with life-of-mine AISCs that are similar to the 2016 feasibility study,” he says. “That is our target — explore the possibility of a 100,000 to 120,000 oz. production profile as our phase-one strategy, followed by resource development drilling and a possible phase-two expansion of either production profile or mineral resource size or both, and preserve the ‘blue sky’ optionality of a phase-three sulphide project.”

Meanwhile at Madougou, the company will continue to assemble historic geochem, geophysics, and drill and sampling data, and prepare for a comprehensive drill program after the 2017 rainy season. Richards says a maiden resource is possible within 12 months.

Madougou came into the company at the same time as the Forbes & Manhattan-led private placement, and African Gold Group has a staged earn-in to acquire 100% of the project. “For now we just need to identify key drill targets for the initial drill program,” he says, adding that Madougou has had over 130,000 metres of historic drilling with “spectacular hits.

Richards has been working on the concept of consolidating gold assets in West Africa for over a year with various private equity partners who share the same vision. His preference, he says, is to build a gold company, and he has done a “deep dive” on 30 to 40 gold projects in West Africa, including 20 site visits.

“We can do just what Neil Woodyer of Endeavour did back in 2012 — consolidate, add value, acquire high-quality projects, create a sustainable pipeline and deliver sizeable returns to shareholders.”

Richards notes that there are a lot of juniors, explorers and preproduction companies that are trading at 0.25 to 0.35 times net asset value (NAV), whereby the delta between explorers and producers (up through mid-tiers 0.5 to 0.8 times NAV and majors 1.2 to 1.6 times NAV) is substantially higher than it was in the lead up to the last bull market for gold.

The reason, he says, “is that exploration companies haven’t been adding any value for the last three years because there was no cash and hence no activity — no drilling and no resource development.

“After the free fall of gold prices and gold equities from 2012 to 2016, most capital markets were closed for exploration dollars, and in the last year, I am seeing that changing,” he says. “Why? It is changing because the gold price is stabilizing and the view is that given the global political landscape and macroeconomic outlook, we are going to see it go up.”

“AGG is well down the ‘value chain’ — 0.20 times NAV — because of this perception, and we intend to change that perception with action and activity to add shareholder value,” he says. “The impact of putting together a number of companies with strategic synergies, located in complementary jurisdictions and countries, with similar geology and metallurgy, is compelling. It is the old adage: ‘bad paper plus bad paper can equal a great deal, which delivers tremendous shareholder value.’”

Richards says he got involved in Forbes & Manhattan in October 2016 because they shared a similar view of consolidation and wanted to use African Gold Group as the platform to be that consolidator.

The mining executive notes that there are several assets in the market that are cash generative and the group is exploring the possibility of financing them if they can get them for a reasonable valuation.

“Everyone knows which ones they are: those in distress, management getting ready to give up, mid-tiers giving off non-core assets, majors looking for alternatives, and always those companies running out of cash and in a death spiral with a low share price,” he says. “The landscape is pretty well-known in our small society of West African mining people.

“We have a strong team within the group that has done this and done it many times,” he says. “I’m confident that we can do this starting as a small $20-million market cap company. But we are not going to be a $20-million market cap company for long. The timing is right as there is opportunity to be had at reasonable valuations, and we will have strong institutional support.”

African Gold Group is trading at 7¢ per share within a 52-week range of 4¢ to 12¢. The junior has 326 million shares outstanding.

Trish Saywell
Senior staff writer
The Northern Miner

TORONTO, ONTARIO--(Marketwired - April 25, 2017) - African Gold Group, Inc. (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to announce that it has completed the previously announced financing whereby certain strategic investors and certain insiders of AGG have subscribed to a private placement of 74,827,188 units (the "Units") at a subscription price of C$0.09 per Unit for aggregate gross proceeds of C$6,734,446.92. Each Unit consists of one common share and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of AGG at a price of $0.12 per share for a period of thirty-six (36) months from the date of closing.

TORONTO, ONTARIO--(Marketwired - March 6, 2017) - African Gold Group, Inc. (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to announce that is has agreed to a private placement into the Company whereby Forbes & Manhattan Resources Inc. ("Forbes") and certain other investors who will subscribe to a private placement of units (the "Unit") at a price of $0.09 per Unit for gross proceeds of up to approximately $7.0 million (the "Private Placement"). The subscription price represents a premium of approximately 38.7% to the last trading price of AGG common shares on March 6, 2017.

Kobada Gold Project - Feasibility Study

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Kobada Gold Project - Appendices to the Feasibility Study

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Dear Investors,

We wish to bring your attention to Dr. Allen Alper’s article in this week's MetalsNews.com newsfeed.

Metals News Snippets

"African Gold Group (TSX: AGG) is currently advancing the Kobada gold project located in Mali, with a completed economic assessment and plans to pursue equity and debt financing. Data indicates that the Kobada Gold project will have a low CAPEX and OPEX with a 511,000 ounce gold reserve.

Declan Franzmann, President and CEO of African Gold Group (TSX: AGG) is currently leading his company to advance the Kobada Gold Project in Mali as their flagship project.

Franzmann has a long history in mining. He said, “I’m a mining engineer. I have been in mining for the last 24 years. I have done a mixed bag of things; from working as a miner underground, to running an entire operation, to a managing director role. Most of my experience is in gold.”

With his experience, African Gold Group has been focused on their Kobada Gold Project in Mali. Franzmann said, “We have been doing quite a bit of work this last few years in quite difficult market conditions. We pushed the project through a preliminary economic assessment back in 2014 and now we have followed through with a feasibility study on the project, which really confirms the findings of the PEA. The feasibility study is mostly focused on our funding initiatives for the project. So in the last two years, we have managed to pull the mining license together, and have managed to get all of the environmental permits for the project. We have put together a 511,000 ounce reserve on the deposit as well. Really the focus now is to move forward with our funding initiatives and to get into a development stage.”"

Click here to read full article...

African Gold Group, Inc. (TSX-V: AGG) ("AGG" or the "Company") is pleased to announce the completion of the Feasibility Study for the Kobada Gold Project. The Study demonstrates the robust nature of the project, with an “All In Sustaining Costs” (“AISC”) of US$788 per ounce and free cash flow of US$122 million net of all capital expenditure, operating costs, royalties and taxation in Mali, at a gold price of US$1,200 per ounce.

The Feasibility Study establishes the maiden Mineral Reserve for the project, containing 511,000 ounces of gold within two oxide open pits. A body of comprehensive test work, undertaken as part of the study, confirms the project’s processing methodology and confirms the robust economic parameters established in the Preliminary Economic Assessment, published December 23, 2014.

The Company plans to use the Feasibility Study to support funding initiatives for the development of the Kobada Gold Project.

FEASIBILITY STUDY HIGHLIGHTS

  • Feasibility Study contemplated a mining and processing operation treating only oxide ore types.
  • Proved and Probable Reserve of 12.7 million tonnes at 1.25g/t Au, containing 511,000 ounces of gold;
  • Mining and processing supports gold production exceeding 50,000 ounces per annum over an eight year mine life;
  • Average cash costs of US$557 per ounce of gold produced;
  • All in sustaining cost (AISC) of US$788 per ounce produced;
  • Total cash flow of US$122 million net of all costs, royalties and taxes at a gold price of $1,200 per ounce;
  • Net present value at 5% discount rate (NPV5%) of US$86 million after taxes;
  • Internal rate of return (IRR) of 43% after taxes.

Dclen Franzmann Q And A W MAGIC

 

As part of continuing research being conducted by Global Business Reports (GBR), Declan Franzmann, President & CEO of the African Gold Group had a question & answer session with Mining In Africa Country Investment Guide (MAGIC).

About MAGIC

Global Business Reports (GBR) and African Mining Indaba LLC is a partnership for the production of a comprehensive intelligence report on the continent’s mineral sector. The third edition of the Official Mining in Africa Country Investment Guide, will be launched next February 2016, as the only official publication providing country-specific information at Africa’s top mining event, the 2016 Investing in Africa Mining Indaba™ held in Cape Town, South Africa.

With 54 sovereign African nations, Africa is arguably the most culturally, politically and geological diverse continent in the world. MACIG aims to guide the global mining and investment community through the challenges and opportunities of this resurgent continent, explaining the issues they must be aware of, highlighting those governments who welcome their investment and emphasizing the sheer scale of the mineral wealth available.

Read More

 

Toronto, Ontario – African Gold Group, Inc. (TSX-V: AGG) ("AGG" or the "Company") 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.

African Gold Group, Inc. (TSX-V: AGG) ("AGG" or the "Company") is pleased to announce the update of the Mineral Resource and provide a general update of progress on the Feasibility Study for the Kobada Gold Project.

SUMMARY

Above a cutoff grade of 0.3g/t Au, the Measured and Indicated (M&I) Mineral Resource was estimated to be 35.4 million tonnes at 1.1 g/t gold, containing 1.21 million ounces of gold. The Measured and Indicated Mineral Resource is mostly unchanged from 2014 despite the inclusion of mining depletion from artisanal mining activity and the lower bulk density applied for the laterite resource. This is largely due to additional drilling allowing the classification of Measured and Indicated Resources from previously Inferred or unclassified resource.

The oxide ore types that comprise the M&I Mineral Resource total 18.0 million tonnes at 1.1 g/t Au containing 620,000 ounces of gold.

ADDITIONAL DRILLING

As announced in a press release dated August 05, 2015, the company completed 1,398 metres of drilling in May 2015. This drilling was included in the update of the mineral resource, although the primary purpose was the collection of geotechnical and metallurgical samples, rather than improving mineral resource size and confidence.

Significant intercepts from this drilling included:

  • 18.4m at 1.02 g/t Au from 24m in KBD15-128;
  • 11.6m at 1.22 g/t Au from 60m in KBD15-129;
  • 25.3 metres at 1.43 g/t Au from 22.7m in KBD15-132;
  • 16.5 metres at 1.99 g/t Au from 76m in KBD15-123;
  • 12.0 metres at 0.55 g/t Au from 107m in KBD15-123;
  • 19.0 metres at 3.26 g/t Au from 61m in KBD15-124;
  • 18.3 metres at 0.52 g/t Au from 57.8m in KBD15-131; and
  • 14.7 metres at 0.58 g/t Au from 80.3m in KBD15-131.

(TSX-V: AGG) ("AGG" or the "Company") is pleased to announce the results of metallurgical test work and provide an update on the progress of the feasibility study.

METALLURGICAL UPDATE

The company completed additional metallurgical test work at Gekko Systems facilities in Ballarat and Bureau Veritas in Perth, Australia, as part of the Feasibility Study process. This work confirms the results established in test work completed in 2014. Overall metallurgical recovery of gold was found to be 80% using the flow sheet established in the previous work.

A 92 kg sample of ore, assaying 0.92 g/t, was initially washed (a process known as scrubbing) and then wet-screened over a 1.18mm screen. The screen oversize represents 20% of the mass, and contained 49% of the gold at a grade of 2.31 g/t. The screen undersize represented 80% of the feed, had a grade of 0.58 g/t. The screening process provided a significant upgrade of the oversize, which was then crushed to below 1.18mm, and combined with the gravity feed to the gravity concentration process.

African Gold Group, Inc. (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to announce that it has completed a non-brokered private placement offering (the "Offering") raising gross proceeds of CDN$1,231,171.40. The Offering consisted of 24,623,428 Units (the "Unit") at a price of $0.05 per Unit. Each Unit is comprised of one common share and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of AGG at a price of $0.06 per share for a period of thirty-six (36) months from the date of closing.

Six officers and directors of the Company (the "Purchasing Insiders"), purchased an aggregate of 51% of the securities issued pursuant to the Offering. The Offering was considered and approved by the board of directors of the Company, with the directors who purchased Units under the Offering declaring a conflict and recusing themselves from voting on the Offering. There was no materially contrary view or abstention by any director approving the Offering. Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the purchase by the Purchasing Insiders was a "related party transaction" but the Company was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Offering.

Mr. Georges Cohen, AGG Director and lead investor in this round of financing noted, “I have been a Director and major shareholder of AGG for only a short period of time and can legitimately express my approval with AGG’s recent accomplishments.  At a time when a number of AGG’s peer group companies have been placed on “care and maintenance”, AGG continues its drive to production in a systematic and focused manner. Through accomplishments such as the recent granting of the mining license, the Kobada project is, in my view, significantly de-risked from an operational and investment perspective and AGG’s ability to advance the project at this time speaks to Kobada’s robustness, both in terms of the low capex, and simple mining and gold recovery process, which contribute directly to Kobada’s impressive projected IRR (Internal Rate of Return). As an experienced investor, who assesses business value regularly, it is my view that the Kobada gold project is exactly right for the times.”

African Gold Group, Inc. (TSX VENTURE:AGG) ("AGG" or the "Company") announces that the TSX Venture Exchange (the "Exchange") has consented to the Company's application to extend the expiry date of certain of its outstanding common share purchase warrants (the "Warrants"). Consent was given to extend the term of 10,714,428 Warrants with an exercise price of $0.12 per common share and due to expire on September 4, 2015 by one year to September 4, 2016.

These Warrants were issued pursuant to a private placement of 21,428,856 units, which closed on September 4, 2013. For further information on the original issuance of the Warrants, please refer to the press release of the Company dated September 5, 2013 filed on SEDAR.

Warrantholders are advised that replacement Warrant certificates will not be issued and that the original Warrant certificates must be presented to the Company in order to effect the exercise or transfer of such Warrants.

African Gold Group, Inc. (TSX-V: AGG) ("AGG" or the "Company") is pleased to announce the Company has received a mining license for the Kobada Gold Project, located in Mali, West Africa on July 31, 2015 (“Kobada” or the “Project”).

This is a very significant milestone in the development of Kobada to a producing gold mine and marks the completion of the key permitting stage. The company now has all of the necessary government approvals for the Project’s development.

DETAILS OF THE MINING LICENSE

The Prime Minister of Mali granted the mining license to African Gold Group Mali SARL (AGG Mali), a 100% owned subsidiary of AGG, on July 31, 2015 under Decree 2015-0528. The mining license covers an expansive area of 135.7 square kilometres (52.4 square miles) and is valid for a period of thirty (30) years.

This area covers 100% of the current mineral resource at Kobada, plus the most advanced exploration targets and areas of significant resource potential.

African Gold Group, Inc. (TSX-V: AGG) ("AGG" or the "Company")is pleased to announce the appointment of Mr. Georges Cohen to its Board of Directors, effective June 22, 2015.

Mr. Cohen is past President and CEO of the most important subsidiary of Europe's largest multinational IT services company, Cap Gemini, headquartered in Paris France. Mr. Cohen was the founder of Paris based, Transiciel, a multinational IT services company employing over 10,000 engineers that merged with Cap Gemini subsidiary, Sogeti, in 2003. Mr. Cohen became CEO of the merged Sogeti-Transiciel (22,000 employees) and became one of four members of the Executive Committee of Cap Gemini (110,000 employees).

Following the successful integration of Sogeti-Transiciel, Mr. Cohen departed the company to engage in private equity investing, on behalf of his family office, in the highly diversified fields of science engineering and related services, real estate, aerospace, communication, real-time media and finance, including co-founding Altergaz, the second largest gas distribution company in France, that was ultimately sold to Eni S.p.A., an Italian multinational integrated energy company. The Cohen family has also invested in Panhard, a leading European light armored vehicle manufacturer that was sold to Volvo Group, AB. Panhard's military equipment is being used in numerous peacekeeping missions, including its current deployment in Mali, West Africa.

On June 2, 2015, African Gold Group Inc. received the environmental approvals for a mining operation at its 100-per-cent-owned Kobada gold project, located in Mali, West Africa.

This is an important milestone in the development of Kobada as the granting of the environmental approval is the penultimate step that precedes the granting of the actual mining license, which the Company expects to obtain in the near future. 

ENVIRONMENTAL APPROVAL 

The grant of the Environmental Permit by the Malian Government's Ministry of Environment and Sustainable Development follows on from the work the Company commenced in June 2014. This work included environmental baseline studies and the development of a full Environmental and Social Impact Assessment ("ESIA") which was developed in conjunction with the Company's local consultant.

A Community Development Plan was completed in parallel with the ESIA. This document outlines the Company's future undertakings to assist in the economic development of the local communities, that are adjacent to the Project, and was developed in consultation with the local communities, the Malian Government and other interest groups.

The following information is filed pursuant to the provisions listed above under the applicable securities legislation:

1. Name and address of the offeror:

Georges Cohen (the “Offeror”)

56, route de Vandoeuvres
Vandoeuvres, CH-1253 Suisse

2. The designation and number or principal amount of securities and the offeror’s security holding percentage in the class of securities of which the offeror acquired ownership or control in the transaction or occurrence giving rise to the reporting obligation, and whether it was ownership or control that was acquired in those circumstances:

The Offeror has acquired ownership and control of 25,270,000 units of Africa Gold Group, Inc. (the “Company”) under a private placement, with each unit consisting of one common share and one-half (½) common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company for a period of twenty-four (24) months at a price of: (i) $0.075 per common share for the first six (6) months and (ii) $0.10 per common share thereafter until the expiry date of the warrant. This acquisition represents 11.18% of the Company’s currently outstanding common shares, and 15.89% of the Company’s common shares on a partially diluted basis assuming full exercise of the warrants.

Introduction

This Management Discussion and Analysis (“MD&A”) is an explanation through the eyes of management, of how African Gold Group, Inc. (the “Company” or “AGG”) performed during the periods covered by the audited consolidated financial statements filed concurrently with this MD&A, and of AGG’s financial condition and future prospects. The MD&A covers the year ended December 31, 2014 and the subsequent period up to the date of the filing. The MD&A compliments and supplements the consolidated financial statements of AGG. For a full understanding of the financial position and results of operations of the Company, the MD&A should be read in conjunction with the Consolidated Financial Statements for the year ended December 31, 2014 and 2013 and notes thereto. The Company’s interim consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). All dollar amounts are stated in U.S. dollars, unless otherwise noted.

Toronto, Canada - African Gold Group, Inc. (TSX V: AGG) ("AGG" or the "Company") is pleased to announce that it intends to complete a non-brokered private placement offering (the "Offering") to raise gross ­proceeds of CDN$1,289,821.85. The Offering will consist of 25,796,437 Units (the "Unit") at a price of $0.05 per Unit. Each Unit is comprised of one common share and one-half (1/2) of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one additional common share of AGG for a period of twenty-four (24) months at a price of: (i) $0.075 per common share for the first six (6) months and (ii) $0.10 per common share thereafter until the expiry date of the Warrant. No broker or finder fees will be payable in connection with the Offering.­

Mali-Mining-Forum-Invitation-AGG-Small

AGG is pleased to advise that The Malian Ministry of Mines has extended an invitation to Mr. Declan Franzmann, President & CEO, African Gold Group, Inc., to be part of a prestigious panel of presenters that will discuss doing business and investing in Mali during the annual Africa Mining Indaba Conference.

African Gold Group, Inc. (TSX V: AGG) ("AGG" or the "Company") is pleased to announce the closing of a non-brokered private placement offering (the "Offering"). The Offering consisted of 33,165,006 Units (the "Unit") at a price of $0.05 per Unit for gross proceeds of $1,658,250.30. Each Unit is comprised of one common share and one-half (1/2) of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one additional common share of AGG for a period of twenty-four (24) months at a price of: (i) $0.075 per common share for the first six (6) months; and (ii) $0.10 per common share thereafter until the expiry date of January 14, 2017.

Four officers and directors of the Company, being Declan Franzmann, Marco Durante, David Brown and Jaimie MacPherson (the "Purchasing Insiders"), purchased an aggregate of 13% of the securities issued pursuant to the Offering. The Offering was considered and approved by the board of directors of the Company, with Declan Franzmann, Marco Durante and David Brown declaring a conflict and recusing themselves from voting on the Offering. There was no materially contrary view or abstention by any director approving the Offering.

African Gold Group, Inc. (TSX-V: AGG) ("AGG" or the "Company") is pleased to advise it has filed the Resource Update andPEA on SEDAR in accordance with National Instrument 43-101, on 23 December, 2014 for its 100%-owned Kobada gold deposit in Mali, West Africa ("Kobada" or the "Project")

The cash flow forecast for the final version of the PEA, filed on SEDAR, has been updated to provide the Project's financial metrics after the payment of royalties, taxes and dividends to the Government of Mali. Production schedules, gold production and all other physical parameter estimates that were presented in the November 25 press release have not changed in the final version of the PEA, filed on SEDAR.

As previously announced,the PEA envisions a relatively simple and low capital cost gravity concentration and concentrate leaching operation with an initial fifteen year mine life. Mining output is modeled at 1.6 million tonnes per annum.

PEA HIGHLIGHTS:

  • Cash flow attributable to AGG's 100% owned subsidiary, AGG Mali SARL, of US$204 million (~ CAD$237 million) after mining royalty (US$24.8 million), gold tax (US$22.3 million), company taxation (US$32.7 million), and dividends payable to the Malian Government (US$18.8 million – reflecting a 10% free carried interest);
  • Pre-tax NPV5% cash flow of US$172 million (~CAD200 million) and IRR of 62%;
  • Post-tax NPV5%cash flow of US$128 million (~CAD148 million) and IRR of 53%;
  • Total pre-production capital of US$46.6 million, including a contingency of US$6.1 million;
  • Cash costs of US$482 per Au ounce for the first two years of operations, with cash costs of US$694 per Au ounce, life of mine. All in sustaining costs (AISC) of USD 792 per Au ounce, life of mine;
  • Annual production, in the first two years of operation, exceeding 50,000 Au ounces. Average gold production of 44,000 Au ounces over 15 year life of mine;
  • Base case is stated assuming US$1,250 per ounce of gold as a long term metal price

Toronto, Ontario -- (November 25, 2014) – African Gold Group, Inc. (TSX-V: AGG) ("African Gold Group" or the "Company") is pleased to announce the completion of a Scoping Study and Updated Preliminary Economic Assessment (PEA) for the Kobada Gold Project, located in Mali, West Africa.

HIGHLIGHTS: LOW CAPITAL AND OPERATING COSTS FOR SCALABLE GOLD PRODUCTION

  • The completion of the Scoping Study demonstrates robust Project economics for a 1.6Mtpa gravity concentration and concentrate leaching operation;
  • Annual production in first two years of more than 50,000 Au ounces. Life of mine average gold production of 44,000 ounces for a 15 year mine life;
  • Cash costs of $482 per ounce for the first two years of operations, with cash costs of US$694 per ounce life of mine. All in sustaining costs (AISC) of $792 per ounce life of mine;
  • Total pre-production capital of US$$46.6 million – includes contingency of US$6.1 million;
  • Project payback in 18 months from initial production;
  • Project NPV5% of US$172 million;
  • Project IRR of 62%; and
  • Significant exploration and brownfields expansion potential to be funded from project cash flow with the potential to quickly develop additional shallow (within 25m of surface) resources for inclusion in the mine plan.

Toronto, Ontario -- (October 29, 2014) – African Gold Group, Inc. (TSX VENTURE: AGG) ("African Gold Group" or the "Company") is pleased to provide an update of ongoing work for the Kobada Gold Project Feasibility Study.

Executive Summary

AGG has received results from metallurgical test work being completed by Gekko Systems in Australia. The results exceed AGG’s expectations for processing the Kobada saprolite ore and include:

  • Overall gravity recovery of gold – 85.2%;
  • High mass rejection, with 61% of saprolite total feed rejected in pre-concentration;
  • Overall mass rejection through pre concentration and gravity concentration – 91.6% (that is 8.4% reports to concentrates).

Work is also continuing in Mali with environmental studies progressing to support all permitting requirements. AGG has also been identifying and negotiating with construction and mining contractors in order to tightly define all costs for the Project.

The results from testwork and cost estimation will now be used for the compilation of the Scoping Study and Preliminary Economic Assessment.  The results of this study are expected prior to the end of 2014.

AFRICAN GOLD GROUP UNAWARE OF ANY MATERIAL CHANGE

TORONTO, CANADA, October 28, 2014 – African Gold Group, Inc. ("AGG" or the "Company"), responding to a request from the Investment Industry Regulatory Organization of Canada, wishes to confirm that the Company's management is unaware of any material change in the Company's activities that would account for the recent increase in market activity.

  • AGG STRENGHTENS MINE DEVELOPMENT TEAM WITH NEW APPOINTMENT
  • 2 TONNE BULK SAMPLE COMPLETED AND SHIPPED TO AUSTRALIA
  • GEKKO SYSTEMS RETAINED TO COMPLETE METALLURGICAL TESTWORK

African Gold Group, Inc. (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to report on the progress of its feasibility study for its Kobada Gold Project, located in southern Mali, which is on schedule and anticipated to be delivered prior to the end of 2014.

Appointment of Kobada Project Infrastructure & Logistics Manager

The Company has further strengthened its feasibility study and mine development team with the appointment of Mr. Torben Michalsen as "Project Infrastructure & Logistics Manager", effective July 11, 2014.

Mr. Michalsen will be responsible for infrastructure and logistics activities relating to the construction, commissioning and project operation at the Kobada gold project.

Mr. Michalsen, is an accomplished project management professional with over 15 years experience managing logistics, resource management and construction in a variety of resource industries spanning three continents. Most recently, Mr. Michalsen was Project Manager at Guyana Goldfields where he was responsible for project implementation, management and development of infrastructure for the Aurora gold mine in Guyana South America. Prior to that, Torben was Forest Operations Supervisor and Manager for several forest management and wood industries companies. Mr. Michalsen has a BSc in Geoscience and Resource Management from the University of Copenhagen.

African Gold Group, Inc. (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to announce the completion of drilling for the 2014 field season at Kobada, Mali. This body of work has resulted in the successful collection of over 2.4 tonnes of lateritic and saprolitic material that is representative of the Kobada ore types.

The final drilling was completed subsequent to the incident that was reported in the Company's press release of July 9, 2014. AGG wishes to acknowledge the continuing support of the Government of Mali and their ongoing efforts to curtail illegal mining activity, throughout the entire country, during the rainy season, in accordance with Mali law. This support has allowed the Company to continue its planned work program through to completion.

Officials representing the Canadian Embassy in Mali continue to be most helpful in providing the Company with advice and support, as well as, intervening at the highest levels of the Mali Government on the Company's behalf. AGG wishes to express its gratitude for the continuing initiatives.

Importantly, 1.8 tonnes of sample material has been air-freighted to Australia for the commencement of metallurgical testwork. The balance of the material is being stored in Mali pending initial results of the testwork. The remainder of the sample material, which is packaged and ready for transport, will be sent to Australia via air-freight, should additional material be required.

African Gold Group, Inc., ("AGG" or the "Company") is pleased to report the final results for the bulk sampling program at its wholly-owned Kobada Gold Project in Mali, West Africa. The program was designed to emulate the Kobada deposit from surface through to bedrock.

HIGHLIGHTS

  • Average bulk sample gold grade was 63% higher than assay data from the same drill hole intervals;
  • Considering bulk sample data above a 0.4 g/t Au cutoff grade indicated that gold content was 76% greater than that provided from the assay data over the same drill hole intervals; and
  • These results demonstrate that drill hole data alone is likely to under estimate gold content for the Kobada resource. Once a mining operation is established at Kobada, this trend is likely to result in positive reconciliations between resource estimates and actual gold production.

African Gold Group, Inc. (TSX VENTURE: AGG) (“AGG” or the “Company”) is pleased to announce today the closing of its over-subscribed, previously announced, non-brokered private placement offering (the “Offering”). The Offering consisted of 20,005,208 Units (the “Unit”) at a price of C$0.12 per Unit for gross proceeds of C$2,400,625. Each Unit is comprised of one common share and one-half (1/2) of one common share purchase warrant (a “Warrant”). Each whole Warrant entitles the holder to purchase one additional common share of AGG at a price of C$0.18 per common share at any time prior to 5:00 pm (Toronto time) on May 21, 2016.

President and CEO of AGG, Mr. Declan Franzmann comments, “We are extremely pleased with the interest shown in this oversubscribed financing. From our perspective, this demonstrates the confidence our shareholders have with our objective of becoming a gold producer by 2016. The Company now has sufficient funds to fast-track the completion of the mine planning and feasibility study for AGG’s Kobada Gold Project, prior to year-end (2014). In conjunction with this milestone AGG will submit an application to the Mali Ministry of Mines with the objective of securing a Mining License to commence production at Kobada.”

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