AIM-listed African Gold has announced substantial gold mineralisation in nine additional holes drilled in the company's Konongo gold property in the Ashanti Gold Belt in Ghana.

AFRICAN Gold, headed by Dublin entrepreneur John Teeling, has bought 70% of the Konongo Owere 950,000 oz gold resource in Ghana for €3.3 million ($4m).

African Gold, the Clontarf based mining company, has finalised a placing of 27,077,777 new ordinary £0.01 (€0.01478) shares at a price of £0.09 (€0.133) raising a total of £2,437,000 (€3,602,894.70 ) from institutional and private investors.

Exploration company African Gold today announced it has taken on a 90-day option on the Konongo gold mining lease, which covers the northeast portion of the Ashanti Gold belt in Ghana.