TORONTO, ONTARIO--(Marketwire - Oct. 10, 2012) - African Gold Group, Inc., ("AGG" or the "Company") (TSX VENTURE:AGG) is pleased to announce that the Company has entered into an agreement to sell 100% of its Mankranho, Ghana concession to Newmont Ghana Gold Limited ("NGGL").
Under the terms of the sale, NGGL will purchase AGG's Mankranho concession for total consideration of US$4,000,000.
The 108 sq km Mankranho concession is located in the Brong Ahafo region of Ghana.
"The sale of Mankrnaho to NGGL represents a significant milestone for AGG, particularly in light of the current macroeconomic environment. The monetization of this asset represents the first step in unlocking the intrinsic value of the Company's Ghanaian assets, which in turn facilitates a non-dilutive solution to funding the ongoing exercise of completing a full Feasibility Study at AGG's Kobada, Mali gold project. Moving forward, our sole focus will be putting Kobada into production, as expeditiously as possible," states AGG President, Michael A. Nikiforuk.
Sierra Partners LLC, headquartered in Denver, Colorado, acted as sole financial advisor to AGG on this transaction.
The closing of the transaction remains subject to standard closing conditions, including all required regulatory approvals.
African Gold Group, Inc., based in Toronto, Canada, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa.
Additional Information is available on the Company's website at www.africangoldgroup.com and on www.sedar.com and through the Company's offices at: Sun Life Financial Tower, Suite 2518, 150 King St. West, Toronto, Canada M5H 1J9.
On Behalf of the Board:
Michael A. J. Nikiforuk, President, DirectorNeither 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.