African Queen Mines Ltd. Announces Private Placements
Vancouver, May 17, 2017 -- African Queen Mines Ltd. (the "Company") is pleased to announce a non-brokered private placement offering to raise gross proceeds of up to CAD $600,000. Under the terms of the private placement, the Company will offer for sale up to 12,000,000 Units (the "Units") at CAD $0.05 per Unit. The Company may, in its discretion, increase the size of this offering by up to 20% to a maximum of 14,400,000 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 $0.075 per Share. Proceeds from the private placement will be utilized for exploration and development of the Company's Yellowjacket Gold Project and related mineral tenures in Atlin, B.C., working capital, and general corporate purposes.
The Company will also be proceeding with a non-brokered flow-through private placement offering of up to 7,200,000 common shares to be issued on a "flow through" basis (the "Flow-Through Shares") pursuant to the Income Tax Act (Canada) at a price of $0.07 per Flow-Through Share for gross proceeds of up to CAD $504,000. The gross proceeds from the flow-through private placement will be used by the Company to incur eligible Canadian exploration and development expenses (as defined in the Income Tax Act (Canada)) on or before December 31, 2018. The purchasers of the shares will be entitled to renunciations from the Company of Canadian exploration and development expenses in an amount equal to the subscription amount effective December 31, 2018. It is contemplated all funding from the flow-through private placement will be expended on the Company's Yellowjacket Gold Project in Atlin, B.C.
The Company may, in its discretion, pay a cash finder's fee of up to 7% of the total gross proceeds of each offering where applicable.
The Units and Flow-Through Shares issued upon the closing of each private placement will be subject to a 4-month hold period. Each private placement is subject to the approval of the Exchange.
About African Queen
The Company is an exploratory resource company engaged in exploration and development of mineral properties in Canada and Africa. It is presently focusing on development of its Yellowjacket Gold Project in Atlin, British Columbia, which covers an aggregate of approximately 291.54 km2. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, Canada, on April 30, 2008, and received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.
ON BEHALF OF THE BOARD OF DIRECTORS OF
African Queen Mines Ltd..
"Irwin Olian"
Irwin Olian
Chairman & CEO
For more information, contact:
| Irwin Olian, President and CEO E-mail: tigertail@africanqueenmines.com Phone: (604) 788-0300 | Carrie Howes, Corporate Communications Email: carrie@africanqueenmines.com Phone : U.K. - +44 (0) 870 490 5443 Canada - +1 416 900 3634 |
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.
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