Asanko Gold Receives Ghana Government Approval for US$185 Million Gold Fields Joint Venture Transaction
June 22 2018 - 7:00AM
Asanko Gold Inc. (“Asanko” or the “Company”)
(TSX:AKG) (NYSE MKT:AKG) is pleased to announce that it has
received approval from the Ghanaian Minister of Lands and Natural
Resources, whose approval was the principal condition to the
closing of Asanko’s previously announced joint venture transaction
(the “Transaction”) with Gold Fields Limited (JSE, NYSE: GFI) for a
50% interest in Asanko’s 90% interest in the Asanko Gold Mine in
Ghana, West Africa.
Completion of the Transaction is now expected in
early July, 2018. The final form of the joint venture agreement
will be publically filed after completion. Completion now remains
subject only to certain customary closing documentation and a
lender’s consent from Exp T2 Ltd. (“Red Kite”), which are all
expected to be in-hand in the ordinary course before the targeted
completion time.
Red Kite has agreed to defer the first principal
repayment, approximately US$20 million, due on July 1, 2018 until
August 1, 2018 to facilitate the Transaction. Asanko intends to use
the cash proceeds from the Transaction to repay in full all
outstanding principal and accrued interest (US$164 million) owing
to Red Kite under the Definitive Senior Facilities Agreement. There
are no early repayment penalties associated with the Red Kite
debt.
Peter Breese, President and CEO, said “I’d like
to thank the Minister of Lands and Natural Resources for expediting
approval of our Joint Venture transaction with Gold Fields and our
in-country advisors, Kimathi and Partners, who have guided us
through this approval process. Upon conclusion of this Transaction
and repayment of the Red Kite debt facility, we will be debt-free
and poised to grow our business and expand our production
base.”
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 completion of announced agreements including the agreement with
Gold Fields, future operations and completion conditions 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 unexpected third party
requirements, the absence of any material adverse events between
the date hereof and completion.. 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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