Star Goldfields Ltd. signed a binding term sheet to acquire AGG (Ghana) Ltd. from African Gold Group, Inc. (TSXV:AGG) on December 23, 2015. Star Goldfields Ltd. entered into a sale and purchase agreement to acquire AGG (Ghana) Ltd. from African Gold Group Inc. (TSXV:AGG) for $1.2 million on January 6, 2016. As per the terms of the deal, SGF has paid African Gold Group $0.2 million as a non-refundable deposit and will pay a remaining $1 million as consideration for 100% of the share capital of AGG Ghana Limited.

The sale of AGG Ghana includes all of the Ghanaian assets, including the 456 square kilometre Asankrangwa Tenements plus the separate Nyankumasi concession. The transaction is subject to customary conditions, including regulatory approvals. The transaction is expected to close within 60 days.

The transaction is expected to close in the second quarter of 2016.