Asanko Gold Completes Gold Fields Joint Venture Transaction
July 31 2018 - 7:00AM
Highlights:
Asanko Gold Inc. (“Asanko” or the “Company”)
(TSX:AKG) (NYSE American:AKG) is pleased to announce that it has
completed the required transactions with subsidiaries of Gold
Fields Limited (“Gold Fields”) (JSE:GFI) (NYSE:GFI) for a 50% joint
venture interest in Asanko’s 90% interest in the Asanko Gold Mine
(“AGM”) and its associated properties in Ghana, West Africa (the
“Transaction”).
Upon closing of the Transaction, Asanko received
US$165 million in cash from Gold Fields, with the remaining US$20
million receivable in cash upon achievement of an agreed Esaase
development milestone but in any event by no later than December
31, 2019. As previously announced, the Transaction will impact the
recognition, presentation and measurement of assets and liabilities
associated with Asanko’s Ghanaian operations. The Company expects
to record a non-cash loss associated with the loss of control of
the AGM and associated properties in Q2 2018, which is expected to
be approximately $0.60 to $0.80 per share.
Peter Breese, President and CEO, said “Today
marks an important milestone for Asanko as we conclude our JV
Transaction with Gold Fields and emerge completely debt-free, with
a strong partner, a solid long life production base, competitive
cost profile, fully funded organic growth and significant
exploration potential.
“In anticipation of the closing of the
transaction we have already established the various working groups
with our new partners to ensure that the AGM continues to operate
in an efficient manner. Once again we would like to thank the
Ghanaian Government for all their assistance in facilitating the
completion of this transaction well ahead of schedule.”
Repayment of the Red Kite DebtFollowing the
receipt of the cash proceeds pursuant to the Transaction, Asanko
has repaid in full all outstanding principal and capitalized
interest owing to EXP T2 Ltd. (“Red Kite”) under the Definitive
Senior Facilities Agreement. There were no penalties associated
with the repayment of the Red Kite debt. Red Kite’s current gold
offtake agreement remains in effect until all outstanding ounces
have been delivered to Red Kite or the joint venture elects to
terminate the offtake and pay the associated termination fee.
AdvisorsIn connection with this transaction,
BMO Capital Markets and Taurum International acted as financial
advisors and McMillan LLP and Kimathi & Partners acted as legal
counsel to Asanko.
Enquiries:For further
information please visit: www.asanko.com, email: info@asanko.com or
contact:
Alex Buck - Manager, Investor and Media RelationsToll-Free
(N.America): 1-855-246-7341Telephone: +44-7932-740-452Email:
alex.buck@asanko.com
Rob Slater – Executive, Corporate Development
and StrategyTelephone: +27-11-467-2758Email:
rob.slater@asanko.com
About Asanko Gold Inc.Asanko’s
vision is to become a mid-tier gold mining company that maximizes
value for all its stakeholders. The Company’s flagship project is
the multi-million ounce Asanko Gold Mine located in Ghana, West
Africa. Asanko is managed by highly skilled and successful
technical, operational and financial professionals. The Company is
strongly committed to the highest standards for environmental
management, social responsibility, and health and safety for its
employees and neighbouring communities.
Forward-Looking and other Cautionary
InformationThis release includes certain statements that
may be deemed "forward-looking statements". All statements in this
release, other than statements of historical facts, that address
the planned operations are forward-looking statements.
Although the Company believes the forward-looking statements
are based on reasonable assumptions, such statements should not be
in any way construed as guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include market prices for metals, the conclusions of detailed
feasibility and technical analyses, the timely renewal of key
permits, lower than expected grades and quantities of resources,
mining rates and recovery rates and the lack of availability of
necessary capital, which may not be available to the Company on
terms acceptable to it or at all. The Company is subject to the
specific risks inherent in the mining business as well as general
economic and business conditions. For more information on the
Company, Investors should review the Company's Annual Form 40-F
filing with the United States Securities Commission and its home
jurisdiction filings that are available at www.sedar.com.
Neither Toronto Stock Exchange nor the
Investment Industry Regulatory Organization of Canada accepts
responsibility for the adequacy or accuracy of this
release.
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