I don't believe that the mentioned "African Gold Zimbabwe" is AFG, but the article does demonstrate rapid resurgence of E&P in Zimbabwe:

Mining Giants Plan Massive Diamond Prospecting

The Herald (Harare)

January 22, 2004
Posted to the web January 22, 2004

Harare

MINING giants, De Beers Zimbabwe Prospecting Limited and Circle Three Mining Corporation are proposing a massive diamond prospecting project that will see the two companies prospecting for the mineral in Gweru, Harare, Bulawayo and Kadoma mining districts.

The two mining companies intend to prospect for diamond in areas covering a total of 448 180 hectares.


Another company, African Gold Zimbabwe, has also undertaken to prospect for gold on two areas measuring 120 550 hectares within the Harare and Gweru mining districts.

De Beers Zimbabwe Prospecting Limited, Circle Three Mining Corporation and African Gold Zimbabwe have applied to the Mining Affairs Board for an exclusive prospecting order for 12 areas under the four mining districts.

In the latest issue of the Government gazette, the Mining Affairs Board said De Beers, Circle Three Mining and African Gold Zimbabwe intend to prospect for diamonds and gold over an area of approximately 568 730 hectares from the three areas.

"The applicants intend to prospect for diamond within the areas, which have been reserved against prospecting pending determination of this application.

"Prospecting authority is sought upon registered base mineral blocks within the reservation," read part of the notice.

One of the two diamond prospecting projects to be undertaken by Circle Three Mining measures 65 000 hectares and is bounded by a line commencing on the Zimbabwe-Zambia border approximating five kilometres.

All areas, which have been earmarked for prospecting are within the 15 000 hectares and 65 000 hectares range and are mostly in the traditional mineral bearing areas of the country.

The proposal to prospect for diamond in the country comes at a time when the US$41 million Murowa Diamond Mine has started to operate following the successful relocation of 141 families which were on the mining site.

Mining is one of the sectors which has been depressed over the last five years but some of the players in the industry have said investors should look at non-traditional minerals.

An example that is often given is that of platinum, which is fast becoming the world's most lucrative mineral.

The mining of diamond in Zimbabwe is also fast gaining pace and it is expected that some of the mining projects would create a lot of employment.

Relevant Links

Southern Africa
Mining
Zimbabwe

Source:http://business.iafrica.com/features/302238.htm

Indaba bullish about commodity market
Justin Brown
Posted Fri, 13 Feb 2004

This year's Indaba Mining conference was abuzz with excitement about the bullish market for commodities, especially precious as well as base metals and bulk commodities like iron ore.

This was a change from last year when the key issue was South Africa's empowerment and transformation programme, with investors', bankers' and mining executives' heads still spinning, some even dazed, about the approach of a new mining order in the country.

Empowerment remains a very key issue to many mining executives, but now it is more a background issue and one that companies want to sort out as soon as possible so as to provide certainty to their shareholders and get on with business as usual.

There was also excitement at this year's conference about China, the world's most populous country, which is rapidly increasing its consumption of metals and minerals.

India, with a population of about a billion people, is seen as the next developing market to see a boom in its demand for commodities, which at this stage is low from a per capita view point.

At the conference there were signs of Afro optimism, with AngloGold's CEO Bobby Godsell and Ashanti Goldfields CE Dr Sam Jonah both calling for a paradigm shift on how African gold miners are rated relative to their other global peers, especially in North America.

Others speakers also expressed optimism about the fortunes for mining on the African continent.

However, concerns were raised about the extent of HIV/Aids in sub-Saharan Africa and its effect on mining in particular.

Another area of concern was the decline in mining exploration.

Bullish on commodities, metals

In US dollar terms, many of the precious and base metals as well as bulk commodities are at or near long-term highs.

Gold touched a 15-year high in January of about $430 while platinum, used mainly in auto catalysts and jewellery, reached a 24- year high of $868/oz in early 2004.

Globally, South Africa is the number one producer of both gold and platinum.

In base metals, nickel and copper have recently touched long-term highs too.

In the area of bulk commodities, there is also very strong demand for South Africa's iron ore, chrome and manganese-all used in the production of production of steel.

Some executives in industry are calling the current bull run one of the biggest in 25 years for metals and minerals the inputs of industrial production.

China devouring commodities, India next

The China dragon, the world's fastest growing major economy, is one of the key sources of growth in the demand for commodities.

However, demand for commodities is growing in all major economic players in the global economy with Japan showing very early signs of recovery, while Europe and the US are on the way to recovery.

India was also identified as the next big developing market to follow China in increasing its consumption of commodities.

In the case of China, Kumba Resources is currently missing out on the rapid expansion of demand for iron ore for China due to South Africa's rail and port infrastructure not keeping pace.

As a result, Kumba's competitors BHP Billiton, Rio Tinto and Companhia Vale do Rio Doce (CVRD) of Brazil which can more easily raise output, are increasing their share of iron ore exports to China.

China is the world's number one producer of steel, with output in 2004 expected to climb 11 percent to 245 million tons from 220 million tons in 2003.

Not only is the world's most populous nation number one in steel it is also a fast growing consumer of platinum, gold, diamonds, copper and aluminium.

Empowerment, mine legislation

On the first day of the conference, Mineral and Energy Minister Phumzile Mlambo-Ngcuka announced that the government will promulgate the Mining and Petroleum Development Act by May 2004.

Mining executives welcomed the announcement after having waited since October 2002, when the empower charter was finalised.

It is unclear whether the Royalty Bill, which seeks to introduce royalties the revenue of South African minerals and metals, will be de-linked from the Act and promulgated at a later stage.

Within five years or by May 2009 South African miners will have to meet the requirements of the empowerment mining charter, with the key requirement being that empowerment interests hold a minimum of 15 percent of the country's mining industry.

Signs of Afro-optimism

Many speakers are the Indaba exuded confidence that Africa was set, in the long-term, for better times.

AngloGold's Godsell, ahead of his company's merger with Ashanti, called for an end to Afro pessimism.

At the time of AngloGold's formation in 1998, the international gold industry had an investment caste system, he said.

"Global investors rated North American companies most generously, then came the Australians and then the Africans," Godsell said.

"In this regard some quite new thinking is needed in regard to risk rating," he added.

"I suspect that the tragic events of September 11th 2002 had profoundly altered the calculus of risk. Equally in the business world the Enrons, WorldComs and Parmalats come as an unpleasant reminder that there is no life economicus without risk," Godsell said.

Regarding, the imminent merger of Ashanti and AngloGold, Godsell said the new group had to demonstrate the capacity to create wealth for shareholders, employees and the communities and countries that host the group.

"My hope is that in doing this we can be a small, but concrete part of our continent's renaissance," he added.

Anglo American deputy CE in South Africa Lazarus Zim said that Anglo saw Africa as a continent that was rich in resources and minerals and the group foresaw excellent opportunities.

Zim also called for the creation of a climate conducive to attracting long-term investment in Africa.

"There are positive signs in Africa. There is peace in the Democratic Republic of Congo and a resolution of the conflict in Liberia," he added.

The New Partnership for Africa's Development was also noted as a positive development.

"You can make money on this continent," Zim said.

Indaba attendance a record

The Mining Indaba, the ninth, saw a record attendance of delegates.

Over 2000 delegates pre-registered for the conference, well ahead of last year when the final delegate count was about 1800 people and talk was that close to 3000 delegates attended the three days this year.

The Indaba also moved its venue to the ultra modern glass-and-steel structure of the Cape Town International Convention Centre, away from its old headquarters at a local hotel in the Mother City.

The conference is the world's leading gathering for mining executives, government policy makers and the finance community interested in African mining.

Three-hundred-and-fifty companies and 37 African governments sponsored the Indaba.

I-Net Bridge

What effect might the new share issue have on AFG and in fact how do share issues work. (Newbie investor)

African Gold PLC
16 February 2004


African Gold plc announces that the following share options were granted to
Directors at a Board meeting held this morning:

John Teeling 700,000 options
Hank Slack 700,000 options
Oliver Baring 700,000 options
James Finn 400,000 options
John Anderson 250,000 options
David Horgan 250,000 options


All of the options are exercisable at any time before 16 February 2011 at a
price of 12.5p per share.

In addition, a holder of warrants over African Gold ordinary shares has
exercised their warrant over 2,000,000 shares. The new ordinary shares will
shortly be allotted and application will be made for the 2,000,000 new ordinary
shares to be admitted to trading on AIM. It is expected that admission of the
new ordinary shares will take place and dealings will commence on 20 February
2004.


This information is provided by RNS
The company news service from the London Stock Exchange

Hi Shwty and others,

It will likely mean that the price may stay in this trading range for a few more days. Until the news shares come onto the market on Friday. Wider picture - news on 2 sites remains. With what was mentioned it the Independent newspaper on Saturday it seems that the remaining sites will be the most lucrative ones to the company.

With this fundraising, the company placed shares with instituional investors and some private investors at 9 pence. Does not mean the price falls to that price. Even at the prices you will continue witnessing instituional buying like today and friday afternoon.

There are other forms of fundraising which take a longer period of time but the company decided to use this option, which I think it is a good one. The fundraising is done and dusted now and look forward to further good newsflow.

RNS Number:4302V
African Gold PLC
16 February 2004


African Gold has finalised a placing of 27,077,777 new ordinary 1p shares at a
price of 9p, raising a total of #2,437,000 from institutional and private
investors.

The funds will be used to undertake an active gold exploration programme on the
recently acquired concession in the Akrokeri area of the Ashanti Gold Belt in
Ghana and to enable the Company to further its stated strategy of investing in
gold mining projects in Africa.

Application will be made for the new shares to be admitted to AIM and it is
expected that admission will take place and dealings will commence on 20
February 2004.


Contacts:

John Teeling - Chairman, African Gold plc - Tel. + 353 1 833 2833
OliverBaring - Director, African Gold plc - Tel. + 44 (0)7785 320567
Barrie Newton - Managing Director, Rowan Dartington - Tel. + 44 (0)117 933 0011


This information is provided by RNS
The company news service from the London Stock Exchange
END

African Gold lost some of its shine, falling 0.37p to 14p after it raised 2.44m via a placing* of almost 27.1 million new shares at 9p each. The funds will be used for gold exploration and mining projects in Africa.

http://www.thisismoney.com/20040216/nm74416.html

Instituional interest:

600,000 single protected buy (T) at 14.25 pence today.

Intercast (ADVFN) - 17 Feb'04 - 14:12 View 'Intercast (ADVFN)' profile


John Teeling CEO of 'African Gold', 'African Diamonds' and 'Petrel' is coming into the ADVFN 'Chat' studio this Thursday 19th Feb. at 9am, direct from his flight from Botswana, to talk about the exciting prospects for his stable of AIM companies.

There will be a Q&A session, so try and prepare any questions you may have for John in advance.

Please Log on in good time--to avoid last minute log-in spike/congestion.

Marcus & Patricia

It seems like every one is waiting for some kind of news,very soon as theres been very little discussion in the past two days about afg.any views from any one espacially Sue helen,as her views are very interesting and i hope she is around.THANKS.

Hi,

Expecting the price to stay in this range now since Monday when the fundraising announcement was made. In addition, the new shares appox.27 million are being admitted on Friday so the price will stay at these levels until then.

In the meantime, some heavy buying has continued into this week with for example 2*275,000 buys at 13.75 pence today.

Should start to gather pace again next week.

A markdown today with the new shares admitted to the market. Took the opportunity to buy more at 12.75 pence. Current price 12.0-13.0 pence.

Offer price up to 13.5 pence now from 13 pence. May see a few delayed buys coming through in the next hour.

Some climb back up with the price at 12.5-13.5 pence.

Price 12.5-14.0 pence. Would expect a significant number of delayed buys to come through later on.

A lot of good buys have come through now ranging from 12.25 pence to 13.75 pence. Nearly all of the buys have appeared in the sell column.

A 200,000 and 150,000 buy have been reported at 12.44 pence.

WHAT ABOUT CMS 50P TARGET !!!!HELEN IS STILL A GOOD WINNER OR NOT

cobra you are asking your question to the wrong person.SH is a trader not an investor.

Saturday's Independent Newspaper:

Press Comment: Independent Market Report

African Gold, which recently unveiled the purchases of gold assets in Ghana's Ashanti Belt, ticked 0.12p higher to 14.37p on whispers that another acquisition is on the cards. According to yesterday's market gossip, the deal would be quite substantial for the AIM listed company, which is presently valued at 30m. A source close to African Gold confirmed that the group was looking at a major acquisition but indicated that a deal is by no means imminent.

The above has been overlooked this week due to the fundraising announcement.

11.5-12.5 pence, treeshake??? These prices are cheap.

sorry cobra should have read penny share punter not trader