Private Placement Announced for IP Anomaly Trenching Program - Kubi Gold Project - Ghana SMD Update
14 January 2020 - 1:30AM
Asante Gold Corporation (CSE:ASE/ FRANKFURT:1A9)
(“Asante” or the "Company") announces a best efforts private
placement to accredited and exempt investors (“Private Placement”),
of up to 3,000,000 units at $0.05 per unit (each a “*Unit”), for
aggregate gross proceeds of up to $150,000. Proceeds from the
private placement will be used to complete a trenching program on
newly outlined IP targets on our Kubi Gold project and for general
working capital purposes.
Douglas MacQuarrie, President and CEO states,
“At Kubi, the tenor of the gold mineralization is directly related
to the sulfide content. Geophysical IP highs are often indicative
of sulfide mineralization. The discovery of numerous IP high
anomalies, brownfields to our **Kubi Main gold resource, opens up
extensive opportunities for resource expansion.”
The Company also announces that the field
program to expose the gold mineralization in the north face of the
Kubi pit has been successfully completed. Work consisted of:
cleaning debris and some vegetation from the first two benches of
the pit to expose fresh rock; the establishment of local survey
control points in order to accurately locate collars for the
proposed ***SMD pilot hole; and the taking of grab samples (5.93g/t
Au over 3.0 metre true width), to confirm the boundaries of the
gold mineralized zone. For further information on SMD, please
see our Asante Gold press release dated March 11, 2019
at:
http://www.asantegold.com/news/asante-gold-explores-new-mining-technology-for-kubi-gold-project-ghana
.
A map of the high priority near pit IP target and
the other high potential IP trends is available
at: http://www.asantegold.com/assets/docs/KubiEIPTrendsN12imgSEMSResourceDDHGoogleImg.pdf and
on our Kubi Gold Mine Project page at:
http://www.asantegold.com/projects/kubi-gold-mine .
On behalf of the Board,"Douglas R.
MacQuarrie"President and CEO
Scientific and technical information contained in this news
release has been reviewed and approved by Douglas R. MacQuarrie,
P.Geo. (B.C.) Geology & Geophysics, the President and CEO of
the Company, who is a "qualified person" under NI 43-101.
Approximate 4kg grab samples were taken at 1.0m intervals and
analyzed for gold by fire assay AA on a 50 gram sample charge at
ALS Ghana Limited laboratory in Kumasi, Ghana.Each *Unit will
consist of one common share of the Company (a “Common Share”), and
one Common Share purchase warrant (a “Warrant”). Each Warrant will
entitle the holder to purchase one additional Common Share at an
exercise price of $0.06 at any time during the 24 months following
the initial closing date. Each Warrant will be subject to forced
conversion which comes into effect once the shares trade at a
volume weighted average price of $0.20, for 20 consecutive trading
days. The expiry date of the Warrants will be 30 days from the date
of issue of a news release announcing the forced conversion. The
Company is relying on exemptions from the prospectus requirements
and applicable securities laws to issue the shares. All securities
purchased under this offering will be subject to a four month and
one day hold period. Directors and officers of the Company may
participate in the private placement. Any such participation would
be considered to be a “related party transaction” as defined under
Multilateral Instrument 61-101 (“MI 61-101”). The transaction would
be exempt from the formal valuation and minority shareholder
approval requirements of MI 61-101 as neither the fair market value
of any units issued to or the consideration paid by such persons
would not exceed 25% of the Company’s market capitalization.
**Kubi Main Zone has a current NI 43-101 resource estimate,
completed by SEMS Exploration Services Ltd. of Accra, Ghana:
Measured Resources 0.66 million tonnes @ 5.30g/t for 112,000
ounces; Indicated Resources 0.66 million tonnes @ 5.65g/t for
121,000 ounces; and Inferred Resources 0.67 million tonnes @
5.31g/t for 115,000 ounces, which is filed on SEDAR. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
***SMD is a large bore precision drilling method that enables
direct mining of narrow deposits. The SMD method is being developed
and commercialized by Anaconda Mining Inc. (“Anaconda”), in
collaboration with Memorial University of Newfoundland and utilizes
technology proven in other industries.
This news release may contain forward-looking
information and statements concerning, among other things, the size
and the growth of the Company’s mineral resources and the timing of
further exploration, the development of the SMD mining technique,
and of the Company’s projects. There can be no assurance that the
plans, intentions or expectations upon which these forward-looking
statements and information are based will occur, and are subject to
a variety of risks, uncertainties and assumptions. Some of the
factors which could affect future results and could cause results
to differ materially from those expressed in the forward-looking
information and statements contained herein include: commodity and
market prices, exploitation and exploration successes, continued
availability of capital and financing and general economic, market,
business or governmental conditions. Forward-looking information is
based on the beliefs, estimates and opinions of management at the
date the statements are made and are subject to change without
notice. Investors are cautioned that final closing of the Kubi
Mining Lease purchase, Betenase and Keyhole options are dependent
on additional governmental renewals, approvals, consents and
financings, which though reasonably expected, may not be ultimately
obtained.
About Asante Gold CorporationAsante is
continuing to source funding to expand and develop its Kubi Gold
project to production, and is exploring the Keyhole, Fahiakoba and
Betenase concessions/options for new discoveries, all adjoining or
along strike of major gold mines near the centre of Ghana’s Golden
Triangle.
For further information please
contact: Douglas MacQuarrie, President and CEO, tel: +1
604-558-1134; E-mail: douglas@asantegold.comValentina Gvozdeva,
Business Development, E-mail: valentina@asantegold.comFlorian
Riedl-Riedenstein, Director; European Investor Relations,
E-mail: frram@aon.netDoreen Kent, Shareholder Communications,
tel: +1 604-948-9450; E-mail: d.kent@eastlink.ca
Additional information is available on our web
site at: www.asantegold.com
LEI Number: 529900F9PV1G9S5YD446. Neither
IIROC nor any stock exchange or other securities regulatory
authority accepts responsibility for the adequacy or accuracy of
this release.
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