Queen Mines Announced a Non Brokered Private Placement Financing for up to CAD 1.0 Million

Proactive Investors reported that the news funds are expected to be used for funding work programs on the company's gold projects in Kenya and Ghana, as well as potential property acquisitions and working capital.

The news funds are expected to be used for funding work programs on the company's gold projects in Kenya and Ghana, as well as potential property acquisitions and working capital.

Vancouver based African Queen Mines announced a non brokered private placement financing for up to CAD 1.0 million.

The company will offer for sale up to 6.66 million units at 15% each. The junior mineral explorer said that it can also increase the size of the offering by up to 20% to 8 million units.

Each unit will be made up of one common share and one half of one share purchase warrant. Every whole warrant will allow for the purchase of another share for a period of 2 years, at a price of 25% each.

The news funds are expected to be used for funding work programs on the company's gold projects in Kenya and Ghana, as well as potential property acquisitions and working capital.

The financing, which is expected to close in one or more tranches by the end of December, still needs approval from the TSX Venture Exchange.

Earlier this month, African Queen revealed that its results from the 2012 diamond core drilling program at its Noyem to Nyanfoman gold project in the eastern region of Ghana were consistent with historic data, confirming the potential of the asset.

The 29 square kilometer project is hosted within the basal conglomerates of the Tarkwaian Group's Banket Formation, which also hosts the Tarkwa Gold Mine operated by Gold Fields that has a combined gold resource of 15 million ounces.

The company said that its initial results from the drill program are consistent with reported historic results from predecessors of Newmont Mining and tend to confirm the presence in the region over a strike of at least 5.6 kilometer of a relatively continuous gold-bearing reef varying in width from 1 meter to 5 meter.

The company, as operator of the project, can earn up to a 75% stake in the property under a JV deal with Akan Exploration, by funding prescribed stages of exploration through to feasibility.

Vancouver based African Queen is exploring its properties in Mozambique, Ghana and Kenya for gold and other metals and it is undertaking exploration in Botswana and Namibia for diamonds, gold and other metals.