ROAD TOWN, Tortola, British Virgin Islands, Aug. 24 /CNW/ – AfriOre Limited (“AfriOre”) (TSX/AIM: AFO) is pleased to announce that the best efforts private placement (previously announced on August 5, 2005) closed today. In order to meet demand for the units, Westwind Partners Inc., Jones, Gable and Company Limited and PowerOne Capital Markets Ltd. (collectively, the “Agents”) exercised their over-allotment option, resulting in AfriOre issuing 4,666,640 Units at C$1.50 each, generating gross proceeds of C$6,999,960.00.
Each Unit consisted of one common share of AfriOre and one-half of a common share purchase warrant. Each whole common share purchase warrant entitles the holder thereof to acquire one common share of AfriOre at an exercise price of C$1.85 per share until August 24, 2007. In the event that the closing price of the AfriOre common shares, on the Toronto Stock Exchange, exceeds C$2.50 for a period of 20 consecutive trading days, AfriOre will have the right to accelerate the expiry date of the common share purchase warrants to 30 calendar days following such notice.
The net proceeds from the private placement will be used for drilling and exploration at the Akanani Platinum project in South Africa, as well as for general corporate purposes.
AfriOre is listed on the Toronto Stock Exchange and London’s Alternative Investment Market and is engaged in the acquisition, exploration and development of gold and platinum exploration properties in Africa. It has gold explorations properties in South Africa, Mali, Namibia and Kenya and the Akanani platinum group metals properties in South Africa. AfriOre has 40,099,377 common shares outstanding (47,265,203 shares fully diluted) and cash of approximately C$9.5 million.
AfriOre is listed in Standard & Poor’s Corporation Records and furnishes information to the SEC pursuant to Rule 12g 3 2(b) under the Securities Exchange Act of 1934.
This document may contain or refer to forward looking information based on current expectations. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.