February 28, 2012
Vancouver, British Columbia - February 28, 2012 - Asante Gold Corporation
is pleased to announce that it has completed its initial public
offering (the “Offering”) through its agent, Canaccord Genuity Corp. (
The Offering consisted of 4,000,000 units at a price of $0.50 per unit
for gross proceeds of $2,000,000. Each unit comprised one common share
and one-half of one transferable common share purchase warrant, with
each whole warrant entitling the holder to purchase one additional
common share until February 28, 2014 at a price of $0.70 per warrant
The Company now has 20,111,000 issued and outstanding common shares.
The TSX Venture Exchange (the “Exchange”) has approved the Company’s
shares for listing under the symbol “ASE”. The Company’s shares are
currently halted for trading and the halt is expected to be lifted on
March 1, 2012.
As consideration for its role as the agent on the Offering, Canaccord
received the following: (i) a cash commission of 7.5% of the gross
proceeds of the Offering; (ii) broker warrants to purchase up to 300,000
common shares of the Company exercisable until February 28, 2014 at a
price of $0.50 per common share; and (iii) a corporate finance fee of
150,000 common shares.
The net proceeds from the sale of the units are intended to be used to
pay the costs of the Offering, the costs to conduct the exploration
program on the Company’s Fahiakoba Concession in Ghana, West Africa,
administrative costs and for general working capital purposes.
The Company advises that Douglas MacQuarrie, the President and Chief
Executive Officer of the Company, participated in the Offering by
acquiring 500,000 units. Mr. MacQuarrie now owns or controls 2,810,000
common shares, 1,250,000 common share purchase warrants and 300,000
options to acquire common shares of the Company.
The Company also confirms that it has entered into a contract with
Burwash 2009 Ghana Limited with respect to a minimum 5,000 metres of
diamond drilling to commence as soon as practicable on the Fahiakoba
concession. Initial drill targets will be the deep seated structures
outlined by the pre-IPO work programs and as detailed in the Technical
Report on the Fahiakoba Gold Project, by Donald G. Allen, MASc., PEng
(BC). Mr. Allen is a “qualified person” as defined under National
Instrument 43-101 and he has reviewed and approved all scientific and
technical information contained in this news release.
For further information, please review the Company’s final prospectus and technical report filed on www.sedar.com
About Asante Gold Corporation
Asante Gold Corporation is a Vancouver-based exploration company. The
Company’s main asset is its Fahiakoba Concession located in the Republic
of Ghana. Please see the attached map of the Fahiakoba Concession.
FOR FURTHER INFORMATION PLEASE CONTACT:
Douglas MacQuarrie, President, tel: +1 604-558-1134; E-mail: email@example.com
Jag Sandhu, Director, Corporate Development, tel: +1 604-306-1950
Doreen Kent, Shareholder Communications, tel: +1 604-948-9450; E-mail: firstname.lastname@example.org
Kirsti Mattson, Media Relations, tel: +1 778-434-2241; E-mail: email@example.com
Europe: Florian Riedl-Riedenstein, Director, tel: +43 2774 28814; E-mail: firstname.lastname@example.org
This news release includes certain forward-looking statements
or information. All statements other than statements of historical
fact included in this release, including, without limitation, statements
relating to the expected listing of shares, removal of the trading
halt, the expected timing of the removal of the halt, Exchange
approvals, the use of proceeds, timing and results of proposed
exploration programs, and other future plans, objectives or expectations
of the Company are forward-looking statements that involve various
risks and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements. In making
the forward-looking statements in this news release, the Company has
applied certain factors or assumptions that it believes are reasonable,
including that the Company will obtain Exchange approval, that it will
be able to obtain necessary equipment, supplies, personnel and approvals
for its exploration and development activities and that the Company’s
exploration activities can proceed as expected. Important factors that
could cause actual results to differ materially from the Company’s plans
or expectations include risks relating to the Company’s ability to
obtain Exchange approval, timeliness of regulatory approvals, actual
results of exploration activities, the Company’s ability to complete its
drilling and exploration programs on schedule, possibility of equipment
breakdowns and delays, and other risks detailed herein and from time to
time in the filings made by the Company with securities regulators.
The Company expressly disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise except as otherwise required by
applicable securities legislation.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
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