AFRICAN QUEEN CLOSES $2.04 MILLION FIRST TRANCHE OF PRIVATE PLACEMENT
Vancouver, British Columbia — AFRICAN QUEEN MINES LTD. (the “Company”) is pleased to announce the closing of the first tranche of its previously announced non-brokered private placement which has raised gross proceeds of CAD $2,041,465. Under the terms of the private placement, the Company has issued 3,140,716 Units (the “Units”) at CAD $0.65 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 $0.85 until November 1, 2012. The Company paid cash finders’ fees of CAD $137,256, representing 6.72% of the aggregate proceeds of the offering. The Units are subject to a 4-month hold period in Canada expiring March 2, 2011.
It is anticipated that a second tranche of the private placement, offering up to an additional 4,359,284 Units, will close mid-November 2010.
According to Irwin Olian, CEO, "It is gratifying to see the strong investor response to our private placement, which has resulted in closing of our first tranche in very short order. The $2 Million raised will cover our budgeted exploration programs for 2011. At the same time, we will now allow the second tranche to provide additional discretionary funding for acceleration of key programs, select acquisitions and working capital. We are excited with progress now underway at King Solomon and Rongo Gold Fields and this funding will permit us to continue our way forward with all due speed."
About African Queen
The Company is an exploratory resource company with diversified mineral properties in Southern and West Africa. It is exploring its properties in Mozambique, Kenya and Ghana for gold and other metals and it is exploring its properties in Botswana and Namibia for diamonds. The Company’s licenses in Botswana and Namibia comprise approximately 9208 sq km of diamond prospects. In Mozambique it has approximately 230 sq km of gold and other metals licenses under an agreement with another company. In Kenya it has approximately 112 sq. km. of gold and other minerals licenses under an agreement with another company. Its operations in Botswana are carried out through its operating subsidiary, PAM Botswana (Pty) Ltd.; its operations in Namibia are carried out through its operating subsidiary PAM Minerals Namibia (Pty) Ltd.; its operations in Mozambique are carried out through its subsidiary PAM Mocambique Limitada and its operations in Ghana are carried out through its subsidiary AQ Ghana Gold Limited. Its operations in Kenya are being carried out through its operating subsidiary AQ Kenya Gold Limited. The Company has its executive offices in Vancouver, Canada.
ON BEHALF OF THE BOARD OF DIRECTORS OF
AFRICAN QUEEN MINES, LTD.
Chairman & CEO
For more information, contact:
President and CEO
Phone: (604) 899-0100
Fax: (604) 899-0200
Düsseldorf +49 (0) 1722 1234 47
London - +44 (0) 7780 602 788
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.