AFRICAN QUEEN ANNOUNCES PRIVATE PLACEMENT
Vancouver, British Columbia — AFRICAN QUEEN MINES LTD. (the “Company”)is pleased to announce a non-brokered private placement offering to raise gross proceeds of up to CAD $2 million. Under the terms of the private placement, the Company will offer for sale up to 8,000,000 Units (the “Units”) at CAD $0.25 per Unit. The Company may, in its discretion, increase the size of this offering by up to 20% to a maximum of 9,600,000 Units.
Each Unit will consist of one Common Share of the Company and one-half of one share purchase warrant (the “Warrants”), where each whole Warrant will allow the subscriber to purchase one additional Common Share of the Company for a period of two years from the date of closing. The exercise price shall be CAD $0.40 per Share. The Company may, in its discretion, pay a cash finders fee of up to 7% of the total gross proceeds of the offering. The offering is anticipated to close in one or more tranches, with the first closing anticipated to take place during July, 2011.
The Units issued upon the closing of the private placement will be subject to a 4-month hold period. The private placement is subject to the acceptance of the TSX Venture Exchange.
Proceeds from the private placement will be utilized for funding work programs on the Company’s gold and metal projects in Mozambique, Kenya and Ghana, as well as potential property acquisitions and working capital.
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 undertaking exploration in Botswana and Namibia for diamonds, gold and other metals. The Company’s licenses in Botswana comprise approximately 2890 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 850 sq. km. under license for gold and metals, and a further 737 sq. km. of gold and other minerals licenses under agreements with two other companies. 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
Dubai - +971 55 997 0427
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.