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Message: Keegan Resources Closes Offering

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Keegan Resources Closes Offering

posted on May 26, 09 05:42AM

May 26, 2009

Keegan Resources Closes Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 26, 2009) - Keegan Resources Inc. ("Keegan") (TSX:KGN)(NYSE Amex:KGN) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Keegan is pleased to announce the closing of a previously announced bought deal share offering of 7 million common shares at the issue price of $2.40 per share, lead by Dundee Securities Corporation with a syndicate of underwriters, including Canaccord Capital Corporation, Clarus Securities Inc., Paradigm Capital Inc. and Wellington West Capital Markets Inc. (the "Underwriters"). The Underwriters have exercised the over-allotment option of an additional 1 million common shares, bringing the total aggregate gross proceeds raised under the offering to $19,200,000.

As part of their compensation, Keegan issued to the Underwriters underwriters' warrants to purchase up to 400,000 common shares of Keegan at the price of $3.10 per share for a period of 18 months after the closing.

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