African Queen Completes $1.278 Million Private Placementadmin
AFRICAN QUEEN MINES LTD., an exploratory resource company with diversified mineral properties in Southern Africa announce the closing of the second tranche of its previously announced non-brokered private placement which has raised gross proceeds of CAD $441,810. Together with the first tranche, previously announced, the Company raised aggregate gross proceeds in this private placement of CAD $1,278,060.
Under the terms of the private placement, the Company has issued in the second tranche 1,472,700 Units (the “Units”) at CAD $0.30 per Unit. Each Unit consists of one common share of the Company and one-half of one share purchase warrant (the “Warrants”). Each whole Warrant entitles the holder to purchase one additional common share of the Company at an exercise price of CAD $0.45 until May 15, 2011. The Units issued in the second tranche are subject to a 4-month hold period in Canada expiring September 16, 2009.
The Company paid cash finders’ fees, for the second tranche, of CAD $22,260, representing 5.04% of the proceeds of the second tranche.
Proceeds from the private placement will be utilized for acceleration of work programs on the Company’s gold project in Mozambique as well as potential property acquisitions and working capital. According to Irwin Olian, CEO of the Company, “We are very gratified by the strong investor response to African Queen’s private placement, resulting in gross proceeds of CAD $1.278 million. The offering was oversubscribed, reflecting confidence in management’s ability to execute its business plan for development of new exploratory resource projects. We are working hard to advance our regional gold project in Mozambique as well as our diamond projects in Botswana and Namibia. At the same time, we are pursuing acquisition of other new prospects to increase shareholder value.”