Asante Gold Oversubscribes Private Placement
VANCOUVER, British Columbia, Jan. 09, 2017 (GLOBE NEWSWIRE) -- Asante Gold Corp. (CSE:ASE) (FRANKFURT:1A9) (OTC:ASGOF) ("Asante” or the “Company") announces that it has received subscriptions for the full C$1.25 million working capital unit private placement announced on September 20, 2016. The first tranche of the placement was closed on October 21st, 2016. Each unit was priced at C$0.18 and consists of one common share and one half of a two year share purchase warrant, each full warrant is exercisable for one common share at C$0.25. All securities purchased under this offering are subject to a four month and one day hold period from the date of issuance of the securities. BXC Company (Ghana) Limited, who have entered into a 50:50 joint venture with the Company to develop the Kubi Mining Leases in Ghana towards production, subscribed for C$700,000 of the units.
Proceeds from the private placement will be used for general working capital, including drilling and other work programs on the Company’s Keyhole, Betenase, Fahiakoba and Kubi projects in Ghana. Finder’s fees are payable on a portion of the offering. All securities purchased under this offering will be subject to a four month and one day hold period.
In addition, the shareholders of the Company overwhelmingly approved all of the motions at the Annual General Meeting held on December 28, 2016, including dis-interested shareholder approval for the Company to proceed with the acquisition of the Kubi Mining Leases and up to eight prospecting licenses located along strike to the south west of the Asanko Gold Mine and adjoining Kubi, from Goknet Mining Company Limited of Accra, Ghana. The Kubi acquisition terms were announced on August 9th, 2016, please see our news release: http://www.asantegold.com/news/kubi-gold-project-ghana-option-agreement.
The approval of the Kubi acquisition allows the Company to proceed with closing the BXC Kubi Gold Mine joint venture. Closing has been extended to February 28th, 2017 to allow for certain closing conditions such as Ministerial approval to be granted.
Ghana completed a peaceful and fair election process in early December resulting in the election of a pro-business and pro-rule of law government. The new Minister of Lands and Natural Resources is expected to be appointed in the next few weeks. For the full terms of the JV please see our October 17th, 2016 news release: http://www.asantegold.com/news/asante-enters-ccad19-5m-joint-venture-and-private-placement-kubi-gold-project-ghana.
Douglas R. MacQuarrie, President & CEO states, “We wish all our shareholders, contractors, and employees a very healthy, happy and rewarding 2017. With the approval of the Kubi acquisition, the substantial initial investment from BXC and the other placees, and a new business friendly government in Ghana, it appears 2017 will be a special year of growth for the Company. We look forward to commencing the surface works at Kubi and aggressive exploration on our other concessions – looking for a new discovery. Thank you for joining with us.”
On behalf of the Board,
"Douglas R. MacQuarrie"
President and CEO
About Asante Gold Corporation
Asante and BXC are proceeding to develop the Kubi Gold Joint Venture as a potential near term underground mine; and Asante is exploring the Fahiakoba, Keyhole and Betenase options, and other concessions, all adjoining or along strike of major gold mines near the centre of Ghana’s Golden Triangle.
This news release contains statements of forward-looking information (or "FLI") including those in respect of future exploration, joint venture, development, permitting and mining at Kubi and the other properties in which the Company has an interest, financings, requisite shareholder approvals and timing for closing of the options. FLI involves risks and uncertainties which could cause actual results to vary from the FLI. The risk factors that could cause actual results to differ materially include: the risk of failure to obtain sufficient financing; the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting drill results and other exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineralization; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; accidents, equipment breakdowns, labor disputes or other unanticipated difficulties with or interruptions in production and operations; the availability and costs of suitable toll milling facilities; fluctuating prices of metals and other commodities; currency fluctuations; the possibility of project cost overruns or unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; regulatory restrictions, including environmental regulatory restrictions and liability and the lack of any assurance that the Company will receive all of the necessary governmental title and approvals to proceed with the development of its projects. The material factors and assumptions on which the FLI is based include the extensive Kubi drilling database and current mineral resource estimate, the previously successful permitting, mining, trucking and milling operations at Kubi, the local availability of skilled labor, plant and machinery, and the positive results from previous metallurgical tests on the Kubi Main deposit mineralization. The Company undertakes no obligation to update FLI except as required by applicable law. Such information represents management's best judgment based on information currently available. Readers are advised not to place undue reliance on FLI.
Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.
For further information please contact:
Douglas MacQuarrie, President and CEO, tel: +1 604-558-1134; E-mail: douglas@asantegold.com
Doreen Kent, Shareholder Communications, tel: +1 604-948-9450; E-mail: d.kent@eastlink.ca
Kirsti Mattson, Media Relations, tel: +1 778-434-2241; E-mail: kirsti.mattson@gmail.com
Florian Riedl-Riedenstein, Director; E-mail: frram@aon.net
Additional information is available on our web site at: www.asantegold.com