ASANTE GOLD ANNOUNCES ACQUISITION OF RESOLUTE’S BIBIANI GOLD MINE IN GHANA FOR US$90 MILLION CASH
August 4, 2021
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Vancouver, British Columbia – August 4, 2021 – Asante Gold Corporation (CSE:ASE/ FRANKFURT:1A9/U.S.OTC:ASGOF) (“Asante” or the "Company") announces that the Company has entered into an agreement with Resolute Mining Limited (Resolute) to purchase 100% of their Bibiani Gold Mine in Ghana.
Highlights
Asante has agreed to buy all of Resolute’s interest in Bibiani, through the purchase of 100% of the shares in Mensin Bibiani Pty Ltd., by paying to Resolute total cash consideration of US$90 million, payable as follows:
US$30 million initial payment (on deposit with Resolute to be applied on completion); and
additional US$30 million to be paid on or before 6 months from completion; and
final US$30 million to be paid on or before 12 months from completion.
The agreement has received Ministerial Consent, having been approved by the Ghanaian Honourable Minister of Lands and Natural Resources, with completion expected 10 days after the date of this announcement (subject only to no material adverse change over this period).
Resolute is a successful gold miner with more than 30 years’ experience as an explorer, developer and operator of gold mines in Australia and Africa which have produced more than 8Moz of gold. The Company trades on the Australian Stock Exchange (ASX) and the London Stock Exchange (LSE) under the ticker RSG. Resolute currently operates the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.
To fund the initial payment, start up and working capital, Asante has accepted Subscription Receipts from accredited investors for C$80,000,000, which on completion will convert to 118,857,143 Asante common shares at C$0.70 per share. A finder’s fee of 4% of the total subscription receipts, is payable in shares. No new control blocks will be created as a result of this financing.
Resolute and Asante are committed to ensuring an orderly transition of ownership at Bibiani. Asante is dedicated to injecting the necessary capital to achieve the rapid restart of Bibiani, which is not expected to result in any immediate changes to outstanding employment or contract relationships. Asante has strong ties to Ghana, with Ghanaian citizens holding a significant shareholding, and board and executive roles. Asante has announced plans to co-list its’ shares on the Ghana Stock Exchange.
The Ghanaian Honourable Minister for Lands and Natural Resources, Hon. Samuel A. Jinapor, MP (the Minister), commented: “I commend the recent approach of Resolute and Asante in their dealings with the Ministry for Lands and Natural Resources and I am pleased to support the transition of ownership of Bibiani to Asante.”
Resolute’s Managing Director & Chief Executive Officer, Mr. Stuart Gale commented: “Resolute has made a commitment to deliver sustainable and enduring value to shareholders and to the communities in which we operate. Resolute is proud of its contribution to Ghana and particularly proud to have the opportunity to transfer ownership in Bibiani to a highly regarded team with strong ties to Ghana. I would once again like to reiterate my sincere gratitude to the Minister for his leadership, sense of integrity, and collaboration with Resolute and Asante to achieve a mutually beneficial outcome for all parties. Similarly, Resolute would like to acknowledge the significant contribution made towards this outcome by the Ghana Minerals Commission. I am confident that Resolute’s positive legacy in Ghana, and the interests of all stakeholders in Bibiani, will be protected and enhanced under Asante’s ownership.”
“The transaction is consistent with our strategic focus on our core operating assets and strengthening the balance sheet, with the initial cash receipt of US$30 million to be applied to the voluntary repayment of debt.” The Bibiani share sale agreement is otherwise on customary terms and conditions for a transaction of this nature, including pre-completion obligations, termination rights and warranties provided by the parties.
Asante’s President & CEO, Mr. Douglas MacQuarrie commented: “Bibiani is a sleeping giant – essentially unmined and on care and maintenance since Ashanti Goldfields exited the project in 2006 when gold was just US$650 per oz. Our investment strategy is to achieve near-term economic returns on this very long-life asset. Resolute has reported in their Bibiani Feasibility Study Update (see ASX Announcement dated 13 July 2018) 2.5 Moz (21.7 million tonnes grading 3.6 g/t) of gold in current JORC resources and Asante has recognized additional exploration upside opportunities, both from near surface and underground targets. It is Asante’s intention, as far as is reasonably practicable, to continue building on the excellent base which Resolute has established through its recent 50,500 metres of drilling.”
“Asante is already exploring on site and building the management and operations team with a view to bring the Bibiani mine back to production within the next year. Further discussions are underway to fully fund the acquisition and its’ development using non-dilutive financing.”
“We are also happy to welcome two cornerstone investors to our share register and our Advisory Board – Emiral Resources, represented by founder and Board member Mr. Boris Ivanov, a UAE based group of companies engaged in mineral exploration and production in various parts of Africa, and in consulting and engineering services for the oil & gas industry worldwide; and Fujairah Holdings, represented by Mohammad Al Othman, CEO, a global investment firm that manages a diversified investment portfolio dedicated to generating steady returns and prudently growing capital through a disciplined investment process. Fujairah Holdings is based in Al Hilal City, Emirate of Fujairah.”
"Douglas R. MacQuarrie"
President and CEO
