Asante Gold Corporation (CSE:ASE/ FRANKFURT:1A9/OTC:ASGOF) has updated its shareholders with respect to the current status of the West Africa-focused miner’s various projects and option agreements.
In a statement issued by Asante Gold President and CEO Douglas R. MacQuarrie on behalf of the Board, the miner also announced the granting of 800,000 incentive share purchase options to consultants and advisors at a price of $0.15 per share for a term of 5 years.
KUBI MINING LEASE ACQUISITION
On August 9, 2016 Asante Gold announced the terms for the acquisition of the Kubi Mining Lease and eight prospecting licenses.
A Special Committee of the Board and the dis-interested Shareholders of the Company have approved the acquisition. Final closing of the Kubi Mining Lease acquisition is subject to receipt of the consent of the Minister of Lands and Natural Resources of Ghana, which is currently being sought.
Asante Gold said it is continuing discussions with the third parties that control the eight prospecting licenses to effect their finalisation and transfer to the Company. With the recent change in Government now completed, we expect the process to proceed smoothly.
KUBI GOLD JV – CLOSING DEADLINE NOT MET – ONGOING DISCUSSIONS
On October 17, 2016, the Company announced that it had entered into an agreement with BXC Company Ghana Limited (“BXC”) to form the Kubi Gold JV, a 50:50 joint venture to develop the Kubi Mining Lease in Ghana towards production and to purchase a 30% equity interest in Asante Gold.
On March 2, 2017 BXC completed the purchase of $700,000 of a $1.25 million private placement offering by the Company, priced at $0.18 per unit. Each unit consisted of one common share and one-half of a share purchase warrant. Each whole share purchase warrant is exercisable to acquire an additional common share for a two year period at a price of $0.25 per share. BXC currently holds 3,888,889 shares and 1,944,445 warrants in the capital of Asante Gold.
Unfortunately, due to the already extended closing and the uncertainty of knowing when requisite governmental approvals would be obtained, and the ongoing financing needs of the Company, the parties have agreed to allow the agreement to expire. The Company and BXC, however, are continuing to co-operate on the basis that governmental approvals may be obtained in due course and a new joint venture formed. The Company notes that there can be no guarantee offered or implied that closing of a joint venture with BXC will ultimately occur. Asante Gold is currently considering other financing alternatives to bring Kubi to an early production decision.
KEYHOLE OPTION
On September 8, 2016 Asante Gold announced the acquisition of up to 100% interest in the Keyhole Option properties that cover an extensive area of past alluvial gold mining. The Special Committee of the Board has approved the acquisition, and the initial payment of 250,000 shares from treasury. Recent drill testing at Keyhole discovered up to 13.1g/t gold over a 3 metre interval in a shear zone. A further program of trenching and detailed ground geophysics has commenced to extend the discovery and test for additional sub parallel shears.
BETENASE OPTION
Asante Gold is continuing discussions with the third party that controls the Betenase Permit to effect its finalisation and transfer to the Company. The Option and Sale Agreement, announced on August 10, 2015, allows Asante Gold to acquire up to a 100% interest in the Permit subject to a 1% NSR royalty to third parties. The permit adjoins to the east of the Kubi Mining Lease. A maiden drill program in December 2015 to test a few of the outlined ground geophysical targets gave results to 3.14 g/t gold over 4.0 metres.
SENECA NSR ROYALTY INTEREST
Asante Gold has received notice from NSS Resources Inc. that a significant part of their Seneca property claims, Harrison Lake area, British Columbia have expired. The decreased size of the property may negatively impact the potential future value of the Issuers’ 2% NSR which it holds on the remaining Seneca claims.
About Asante Gold Corporation
Asante Gold has the right to buy 100% of the Kubi Mining Lease and is exploring the Keyhole, Fahiakoba and Betenase concessions, all adjoining or along strike of major gold mines near the centre of Ghana’s Golden Triangle.
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