Asante Gold Corporation (CSE:ASE/ FRANKFURT:1A9/OTC:ASGOF) has announced that it has closed the initial tranche of the $1million exploration and working capital private placement announced on September 20, 2016.
The placement was temporarily suspended for the dissemination of material news with respect to the joint venture of our Kubi Gold Project, which was published on October 17, 2016.
A total of 2,125,311 units were subscribed by 14 placees with gross proceeds of $382,556. Finder’s fees of $17,670 and 98,167 agents warrants were payable to third parties with respect to the placement.
The Company plans to continue with the second tranche of the Private Placement and to accept subscriptions for up to an additional 3,430,244 units at $0.18 per unit (each a “Unit”) for additional gross proceeds of up to $617,444.
Each Unit will consist of one common share of the Company and one half of a transferrable Common Share purchase warrant. Each whole Warrant will entitle the holder to purchase one additional Common Share at an exercise price of $0.25 for twenty four (24) months from the second closing date of the Private Placement. In the event that the Private Placement is oversubscribed, the Company may increase the placement by up to 25%.
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 may be 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.
Certain directors and officers of the Company may participate in the private placement. Any such participation would be considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The transaction would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any units issued to or the consideration paid by such persons would not exceed 25% of the Company’s market capitalisation.
Douglas R. MacQuarrie, President & CEO stated: “We plan on commencing an initial drill program on the MEM showing on our Keyhole option at the earliest opportunity. This showing has extensive artisanal workings, and to our knowledge has never been drilled. Historical underground sampling results of quartz reefs have reportedly graded to 8 metres of 25g/t Au. Geophysical surveys to outline additional targets in the vicinity of the showing will also commence, to be tested by an expected Phase 2 drill program.”
Asante Gold Corporation is developing the Kubi Gold Joint Venture as a potential near term underground mine; and exploring the Fahiakoba, Keyhole and Betenase options, and other concessions, all adjoining or along strike of major gold mines and near the centre of Ghana’s Golden Triangle.
