African Queen Mines (CVE:AQ) said late Friday that it has closed a C$1.7 million first tranche of its previously announced $1.98 million non-brokered private placement financing.
Under the terms of the offering, the company issued 7.79 million units at 22 Canadian cents each.
unit consists of one common share and one-half of a share purchase
warrant, with each whole warrant entitling the holder to purchase one
additional common share of the company at an exercise price of 37 cents,
until March 16, 2014.
In connection with the financing, the
company paid cash finders’ fees of C$58,297, representing 3.40 percent
of the total proceeds of the deal.
“We are very gratified with
the strong investor response to our financing,which has resulted in our
closing the first tranche with approximately $1.7 Million in a short
period of only two weeks since we commenced the offering," said CEO
"Considering the highly volatile market environment
facing mining shares, we are very thankful to the 42 investors who so
readily participated in the offering.
"This first tranche will
provide the company with the necessary funding to cover our budgeted
drill programs in Ghana and Kenya, as well as working capital."
Olian added that the second tranche is expected to close before the end of the month.
early March, the mineral explorer said it plans to raise $1.98 million
through a non-brokered private financing. The Vancouver-based miner said
it would offer nine million units priced at 22 cents a unit. The
company also noted it may boost the offering by 20 percent to 10.8
African Queen said it will use funds from the
offering to finance development at its Odundu property in Kenya’s Rongo
gold fields, and for its Noyem-Nyanfoman property in Ghana.
company, under a joint venture deal with Akan Exploration, can earn a 75
percent stake in the Noyem-Nyanfoman gold project by funding prescribed
stages from exploration through feasibility. African Queen is the
operator of the project.
Last September, the company arrived at a
settlement for an additional 12 mining claims at its Noyem-Nyanfoman
gold project. The 12 claims cover about 300 acres on the Noyem A reef in
Ghana's Ashanti Belt. This followed settlements in July 2011 for an
additional seven of the 26 mining claims that conflicted with its
prospecting license for the gold property.