Asante Gold Corporation (CSE:ASE/
FRANKFURT:1A9/OTC:ASGOF) (“Asante Gold” or the “Company”) updates the shareholders with respect to the current status of our various projects and option agreements. Asante Gold also announces 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 (please see: http://www.asantegold.com/news/asante-gold-acquireskubi-mining-leases-and-eight-prospecting-licenses-in-ghana ).
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 is continuing discussions with the third parties that control the eight prospecting
licenses to effect their finalization 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.
Please see:
http://www.asantegold.com/news/asante-acquires-strategically-located-keyhole-gold-project-ghana and
http://www.asantegold.com/news/asante-gold-intersects-13-1 -gpt-gold-over-3-0m-at-keyhole-optionghana ).
BETENASE OPTION
Asante Gold is continuing discussions with the third party that controls the Betenase Permit to
effect its finalization 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 (please see: http://www.asantegold.com/news/asanteoptions-perseus-mining-s-betanase-concession-kubi-area-ghana & http://www.asantegold.com/news/goldmineralization-discovered-at-betanase-kubi-obuasi-area-ghana ).
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.
On behalf of the Board,
“Douglas R. MacQuarrie”
President and CEO
