MONTREAL, Aug. 9, 2017 /CNW Telbec/ - ALGOLD
RESOURCES LTD. (TSXV: ALG) ("Algold" or the "Corporation")
today announced the closing of a private placement (the "Offering")
of 18,583,364 units at a price of $0.20 each, for gross proceeds of $3,716,673. Each unit is composed of one common
share of Algold (a "Common Share") and 0.5538 of one Common Share
purchase warrant (a "Warrant"), for a total of 10,291,682 Warrants,
each entitling the holder to acquire one Common Share at a price of
$0.30 for a period of 18 months from
the closing of the Offering.
The subscriber under the Offering, Wafa Mining &
Petroleum SA ("Wafa"), has the right to nominate one member to
Algold's board of directors and has been granted the right to
participate in any future offerings to allow Wafa to maintain its
ownership stake. If Wafa is diluted, it may also require Algold to
complete a private placement in order to increase its participation
to up to 10% so long as gross proceeds of such an offering would be
at least $500,000.
The Offering remains subject to approval by the TSX Venture
Exchange. The securities issued under the Offering are subject to a
hold period expiring four months and one day after their
issuance.
The Warrants may not be exercised to the extent that, following
that exercise, Wafa would hold more than 10% of the outstanding
Common Shares, unless the TSXV has authorized that Wafa become an
insider of Algold.
Before this subscription, the only securities of Algold held by
Wafa were 500,000 Common Shares, which represented approximately
0.3% of the outstanding total. Following this subscription, Wafa
holds 19,083,364 Common Shares and 10,291,682 Warrants,
representing approximately 9.8% of the Common Shares on a
non-diluted basis and 14.33% on a partially-diluted basis. Wafa
acquired the Common Shares and Warrants for investment purposes and
to actively participate in the development of Algold's mining
projects. Depending upon the circumstances, Wafa may, from time to
time, acquire additional securities of Algold or dispose of all or
a portion of the securities of Algold previously acquired.
An early warning report containing additional information with
respect to the foregoing matters will be filed under Algold's SEDAR
profile at www.sedar.com, a copy of which may be obtained by
contacting its President & CEO, François Auclair, at 514-889-5089.
In other news, Algold has issued 7,349,339 Common Shares under
its option agreement with Gryphon Minerals Limited, originally
announced on October 28, 2015. The
obligation to issue these Common Shares was triggered by Algold's
announcement on May 1, 2017 of an
increase in the inferred mineral resources on its Tijirit property.
For more information, please see Algold's press releases issued on
those dates.
ABOUT WAFA
WAFA Mining & Petroleum is part of Groupe WAFA SA.
Groupe WAFA SA is an important family enterprise in
Mauritania. The Ghadda family
business established itself in the import and distribution of
food products. Since then the business has diversified into
construction, industrial fisheries, real estate, public works,
distribution of petroleum products and banking. Its mining
business, WAFA Mining and Petroleum, was established in
2010 as WAFA Mining SA then extended in 2012 its scope to the
petroleum sector. It holds several tenements of mineral
substance in Tasiast, Amsaga and the Mauritanides.
ABOUT ALGOLD
Algold Resources Ltd. is focused on the exploration and
development of gold deposits in West
Africa. The board of directors and management team are
seasoned resource industry professionals with extensive experience
in the exploration and development of world-class gold projects in
Africa.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Algold Resources Ltd.