Asanko Gold Completes US$17.6 Million Private Placement by Gold Fields for 9.9% Interest in Asanko
April 05 2018 - 7:00AM
Asanko Gold Inc. (“Asanko” or the “Company”)
(TSX:AKG) (NYSE American:AKG) is pleased to announce that it has
completed the previously announced private placement with Gold
Fields Limited (“Gold Fields”) (JSE:GFI) (NYSE:GFI), pursuant to
which a subsidiary of Gold Fields has acquired a 9.9% interest in
Asanko. The private placement involved the issue of 22,354,657
common shares of Asanko at a price of approximately US$0.79
(C$1.01) per share for total aggregate proceeds of US$17.6
million.
Concurrent with the completion of the private
placement, Asanko entered into an investor rights agreement with
the Gold Fields subsidiary which provides certain rights to Gold
Fields to participate in future Asanko share issuances in order to
maintain its 9.9% shareholding for up to five years. In addition,
Gold Fields has agreed that it will standstill at this level of
ownership for a one year period unless Asanko otherwise consents,
and will support Asanko management nominees at shareholder
meetings.
The completion of the private placement is the
first step in the series of transactions under which Asanko and
Gold Fields will, among other things, form an incorporated 50:50
joint venture in the Asanko Gold Mine (the “JV Transaction”).
Completion of the JV Transaction remains subject to customary
conditions precedent including that no material adverse event
occurs and the Ghanaian Minister of Lands and Natural Resources
does not object. Completion of the JV Transaction is expected to
occur before the end of Q3 2018.
The private placement shares are subject to a
four month hold period in Canada. The shares were not and
will not be registered under the United States Securities Act of
1933, as amended, and may not be offered or sold in the United
States absent registration or an applicable exemption from
registration requirements.
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.
About Gold Fields LimitedGold
Fields Limited is a globally diversified gold producer with seven
operating mines in Australia, Ghana, Peru and South Africa, and a
total attributable annual gold-equivalent production of
approximately 2.2 million ounces. It has attributable gold Mineral
Reserves of around 49 million ounces and gold Mineral Resources of
around 104 million ounces. Attributable copper Mineral Reserves
total 764 million pounds and Mineral Resources 4,881 million
pounds. Gold Fields has a primary listing on the Johannesburg
Stock Exchange (JSE) Limited, with secondary listings on the New
York Stock Exchange (NYSE) and the Swiss Exchange (SIX).
Forward-Looking and other Cautionary
Information
This 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 completion of announced agreements including the agreement with
Gold Fields, estimated resource quantities, grades and contained
metals, possible future mining, exploration and development
activities, 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.
Enquiries:
For further information please visit: www.asanko.com, email: info@asanko.com or contact:
Alex Buck - Manager, Investor and Media Relations
Toll-Free (N.America): 1-855-246-7341
Telephone: +44-7932-740-452
Email: alex.buck@asanko.com
Rob Slater – Executive, Corporate Development and Strategy
Telephone: +27-11-467-2758
Email: rob.slater@asanko.com
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