Private Placement Announced for IP Anomaly Trenching Program - Kubi Gold Project - Ghana SMD Update

2020-01-13 / @nasdaq

 

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

VANCOUVER, British Columbia, Jan. 13, 2020 (GLOBE NEWSWIRE) -- 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 Corporation
Asante 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.com
Valentina Gvozdeva, Business Development, E-mail: valentina@asantegold.com
Florian Riedl-Riedenstein, Director; European Investor Relations, E-mail:  frram@aon.net
Doreen 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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