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Friday, 29th September 2006 (3418 views)

Central African Gold has announced that it hopes to raise approximately £25.2 million by placing 210 million shares.

The funds emanating from the share issue will be used to further production and development and enable acquisitions.

Central African Gold recently announced that it would take over the Bibiani mine from AngloGold Ashanti by paying $40 million in cash. The reverse takeover agreement will allow Central Afican to start production and generate revenue immediately.

An underground production programme will start at Bibiani in the second half of 2007.

Central African Gold president Greg Hunter commented: "This acquisition represents a significant step in the evolution of the company as it will transform it into a producer and provide it with significant exploration potential as well as a valuable foothold in Ghana.

"We have already acquired and are progressing our exploration properties in Mali and Botswana and we are considering other potential acquisitions in Africa."

 

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