Mineral explorer African Queen Mines (CVE:AQ) said Tuesday it plans to raise $1.98 million through a non-brokered private financing, as the company seeks to fund drilling at its Noyem gold project, West Africa.
The Vancouver-based miner said it
will 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 million
Each unit consists of one common share and one-half of
one purchase warrant of African Queen. Each whole warrant gives the
holder a right to buy one extra share for 37 cents each for two years
following the closing date.
A finder’s fee of seven percent of
the offerings gross proceeds might be paid. The financing is slated to
close in March and may include one or more tranches.
securities issued have a four month hold period, while the private
placement is subject to Toronto Stock Venture Exchange approval.
Queen said it will use funds from the offering to finance a drill
program at its Odundu property southwest in Kenya’s Rongo gold fields,
property acquisitions and working capital.
The 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
Last September, the company arrived at a settlement
for an additional 12 mining claims at its Noyem-Nyanfoman gold project
in Ghana. 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.
The company’s share price traded at 21.5 cents apiece on Toronto’s junior stock exchange on Tuesday morning.