Keegan Resources Completes $13.5 Million Financing
Thursday, November 29th, 2007
Keegan Resources Inc. announces that further to its news release of November 5, 2007, it has now completed the previously announced private placement of 3,300,000 units of the Company at a price of $4.10 per Unit for gross proceeds of $13,530,000. The financing was underwritten by Dundee Securities Corp. and Cormark Securities Inc who exercised their 10% over-allotment right. Each unit consists of one common share and one half of one share purchase warrant. Each whole warrant is exercisable at $5.25 per Share for an eighteen month period expiring May 27, 2009, subject to accelerated expiry if the shares close over $6.00 for any 20 consecutive days. All securities issued pursuant to this private placement have a hold period until March 28, 2008.
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of registration or an applicable exemption from the registration requirements.
Proceeds will be used to further delineate resources on the Keeganâ€™s Esaase Gold Project in Ghana where a resource estimate of 1.43 million ounces of gold (Au) in an inferred category and 0.24 million ounces in an indicated category at an average grade of 1.4 g/t Au applying a 0.6 g/t Au cut-off was announced on October 15, 2007. A total of 151 holes drilled at collar spacing ranging from 25m by 40m to 40m by 80m were used to establish the resource. Additional noteworthy drill intercepts were announced November 1 and 15, 2007.
Daniel McCoy, President, CEO and Director, commented â€œWe are very pleased with the reception this offering received; these funds will accelerate extensive exploration programs on both of the companyâ€™s properties in Ghana and particularly the ongoing resource delineation program at the Esaase Gold Project.”.
For further information visit: www.keeganresources.com