AFRICAN QUEEN COMPLETES SECOND TRANCHE OF
$3.284 MILLION PRIVATE PLACEMENT
Vancouver, British Columbia — AFRICAN QUEEN MINES LTD. (the “Company”) is pleased to announce the closing of the second tranche of its previously announced non-brokered private placement which has raised gross proceeds of CAD $1,242,505. Together with the first tranche, previously announced, the Company raised aggregate gross proceeds in this private placement of CAD $3,283,970.
Under the terms of the private placement, the Company has issued in the second tranche 1,911,547 Units (the “Units”) at CAD $0.65 per Unit to institutional and private investors. 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 December 3, 2012. A total of 5,052,263 Units has been issued in aggregate in this private placement.
The Company paid cash finders’ fees for the second tranche of CAD $85,225, representing 6.86% of the aggregate proceeds of such tranche. The Units in the second tranche are subject to a 4-month hold period in Canada expiring April 4, 2011.
Proceeds from the private placement will be utilized for funding work programs on the Company’s gold projects in Mozambique, Kenya and Ghana, and on its diamond projects in Botswana and Namibia, as well as potential property acquisitions and working capital.
According to Irwin Olian, CEO of the Company, “We appreciate the excellent investor response to our offering. This funding now leaves the Company in a strong financial position with cash on hand to cover all budgeted drilling and exploration programs anticipated for 2011, as well as a cushion for accelerating key programs and making other discretionary expenditures.”
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.