[Ghana] Asante Gold seeks buyout for Kubi project
08-10-2018 07:44:10 | by: Bob Koigi | hits: 3389 | Tags:

Asante Gold has announced that in addition to its previous disclosure re sourcing a 50:50 joint venture partner for the exploration and development of the Kubi Gold project in Ghana, that the company will now consider cash bids for a 100% buy-out.

Asante is continuously evaluating its portfolio of gold mineral assets and options in order to build value for our shareholders and stakeholders.  Financing Kubi through either debt or equity have proven challenging through this long bear gold market, and hence with the recent increase in gold related M&A activity, we conclude that the JV or buy-out route will maximize our returns.

Once funded, Asante will commence aggressive exploration of Betenase located just to the south of Obuasi and our other high potential gold exploration concessions, including Keyhole, on the Asankrangwa gold belt in Ghana. Finders fees may be payable on a success basis, and any transfer of mineral title interests in Ghana will require Ministerial approval.

On closing of a JV or a buy-out, the Company will complete the purchase of Kubi from Goknet Mining Company Limited of Accra, by the issuance of seven million treasury shares, and by reserving for future delivery 8,000 ounces of gold and a 1% Net Smelter Returns royalty. 

Royal Gold, Inc. of Denver holds a 3% Net Proceeds of Production royalty (net profits after all costs including taxes and royalties), and the Ghana Government a statutory 10% free carry equity (10% of any declared dividend) and 5% NSR royalty interest. There can be no guarantee that suitable JV or buy-out terms will be agreed with any prospective investor.

Kubi currently has a NI 43-101 resource estimate, completed by SEMS Exploration Services Ltd. of Accra, Ghana: Measured Resources 0.66 million tonnes @ 5.30g/t for 112,000 ounces; Indicated Resources 0.66 million tonnes @ 5.65g/t for 121,000 ounces; and Inferred Resources 0.67 million tonnes @ 5.31g/t for 115,000 ounces, which is filed on SEDAR.

www.asantegold.com