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African Queen Closes Second Tranche, Raises $702,900

African Queen Mines (CVE:AQ) said Friday it closed the second tranche of its previously announced non-brokered private financing, which raised $702,900.

The company sold 3.19 million units priced at 22 cents each. Together with its first tranche the company has raised proceeds of $2.41 million.

Each unit consists of one share and one-half of one purchase warrant. Each warrant gives the holder the right to buy one extra common share at an exercise price of 37 cents until March 30, 2014.

In addition, the company paid a cash finder's fee of $37,576. Together with the first tranche, the gold explorer paid cash finders' fees worth $92,837, reflecting 3.84 percent of the offering's proceeds.

The issued units are subject to a four-month hold period in Canada and expire on July 31, 2012.

Proceeds from the offering will be used to fund the current drill program at its Noyem-Nyanfoman project on Ghana's Ashanti Belt.

Funds will also be used for a drill program at its Odundu property in southwest Kenya's Rongo Gold Fields, and for potential property acquisitions and working capital.

"We are extremely grateful to the many investors who have participated in our financing during this challenging period in the junior mining industry," African Queen chief executive Irwin Olian said in a statement on Friday.

"The offering was oversubscribed and the company utilized its overallotment option to accommodate additional investor demand. This financing provides the company with all the funds anticipated for its budgeted programs in Ghana and Kenya this year, as well as discretionary working capital."

In early March, the mineral explorer said it plans to raise $1.98 million through a non-brokered private financing. The Vancouver-based miner said it would offer nine million units priced at 22 cents a unit. The company also noted it may boost the offering by 20 percent to 10.8 million units.

African Queen said it will use funds from the offering to finance development at its Odundu property in Kenya's Rongo Gold Fields, and for its Noyem-Nyanfoman property in Ghana.

The company, under a joint venture deal with Akan Exploration, can earn a 75 percent stake in the Noyem-Nyanfoman gold project by funding prescribed stages from exploration through feasibility. African Queen is the operator of the project.

Last September, the company arrived at a settlement for an additional 12 mining claims at its Noyem-Nyanfoman gold project. The 12 claims cover about 300 acres on the Noyem A reef in Ghana's Ashanti Belt. This followed settlements in July 2011 for an additional seven of the 26 mining claims that conflicted with its prospecting license for the gold property.