Corporate Update - Proposed Royalty AcquisitionMarch 21, 2013
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES
Vancouver, British Columbia — March 21, 2013 — Asante Gold Corporation (TSX.V:ASE/ FRANKFURT:1A9) (the “Company”) would like to update its shareholders with respect to the announced acquisition of a 1% NSR royalty interest on the Obotan Gold Mine project in Ghana (the “Royalty”), published on November 12, 2012.
The royalty holder, Goknet Mining Company Limited, of Accra, Ghana (“Goknet”) has informed the Company that it has not yet received the necessary third party consent to the assignment of the Royalty and that it will take all actions necessary to obtain the consent. It has referred the matter to binding arbitration, with a determination expected by the end of April 2013.
Goknet has confirmed to the Company that it holds a 2% NSR royalty interest in all the concessions held by PMI Gold Corporation and its subsidiaries (“PMI”) on the Asankrangwa gold belt in Ghana, including all the concessions and mining leases which make up PMI’s Obotan Gold Project. It also notes that the PMI Feasibility Study dated September 17, 2012 and prepared for PMI by GR Engineering Services Ltd., and filed on Sedar ( www.sedar.com) on September 19, 2012, has an allowance for the payment of US$205.6 million in royalty payments over the 11.5 year life of mine, which equals 7% (5% reserved for the Government of Ghana, and 2% reserved for Goknet) of the life of mine project revenue of US$2.9 billion (total of 2.26 million recovered oz Au x US$1,300/oz gold price used in the study).
The November 12, 2012 news release also anticipated that a private placement funding of up to $2 million would be announced for working capital purposes. The Company anticipates that sufficient working capital will be available from the exercise of outstanding private placement warrants that are currently priced near market and that no additional equity offering will be undertaken at this time.
This news release has been approved by the Special Committee of the independent directors of Asante Gold Corporation which was convened to complete the royalty acquisition from Goknet.
On behalf of the Board,
“Douglas R. MacQuarrie”
President & CEO
About Asante Gold Corporation
Asante Gold Corporation (TSX.V:ASE/FRANKFURT:1A9) is a Vancouver based gold exploration and royalty focused company, exploring the Fahiakoba Concession located in the centre of Ghana’s Golden Triangle between Perseus Mining’s 250,000 oz Au per year Edikan mine, and AngloGold Ashanti’s 315,000 oz Au per year Obuasi mine.
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 contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under the Company’s control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements. We Seek Safe Harbour.
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.