Asante Gold accepts $100M private placement

Asante Gold accepts $100M private placement

Asante Gold Corporation has accepted subscriptions aggregating CAD$101.98 million in connection with the previously announced private placement of common shares of the Company at a price of CAD$1.75 per common share (the “Offering).

Included in the subscribers are the Ghana Minerals Income and Investment Fund (“MIIF”) that subscribed for 14,514,286 common shares and Emiral Resources Limited (“Emiral”) that subscribed for an additional 12,249,208 shares, maintaining its cornerstone investment in the Company.

MIIF receives mineral resource royalties from mineral production in Ghana. MIIF has been mandated by the Ghanaian government to build a world class minerals industry and to serve as a strategic lever for the economic transformation of Ghana. MIIF has reported GH1.9 billion under management.

Emiral subscription

The subscription by Emiral under the Offering combined with its current shareholdings will represent at closing a 19.87% ownership stake in the Company. Emiral is considered a “related party” of the Company and, accordingly, its subscription constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”).

The Emiral subscription is exempt from the minority approval requirement of Section 5.6 and the formal valuation requirement of Section 5.4 of MI 61-101 as neither the fair market value of the Emiral subscription, nor the fair market value of the consideration for the Emiral subscription, has exceeded 25% of the Company’s market capitalization.

The second US$30 million payment to Resolute Mining Limited for the Bibiani Mine acquisition has been completed, with the final payment of US$30 million payable in six months. The balance of the proceeds from the Offering will be used for Bibiani Mine development and working capital purposes.

The Company will also pay certain finders’ fees in connection with the Offering in accordance with the rules of the Canadian Securities Exchange. All securities issued will be subject to a four month and one day hold period under Canadian securities legislation.

The Company also granted 7,039,340 incentive stock options at $1.75 per share for terms of two and five years to directors, consultants and employees, as well as 1,515,760 Restricted Share Units, and 4,285,900 Deferred Share Units subject to the provisions of the Company’s Equity Incentive Plan.



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