Loading ...Asanko Gold to Receive US$185 Million From Gold Fields for 50% Joint Venture Interest and US$17.6 Million for 9.9% Private Placement in Asanko Gold
VANCOUVER, British Columbia, March 29, 2018 (GLOBE NEWSWIRE) — Asanko Gold Inc. (“Asanko” or the “Company”) (TSX:AKG) (NYSE American:AKG) is pleased to announce that it has entered into certain definitive agreements under which Asanko will receive US$185 million for a 50% joint venture (“JV”) interest in its Asanko Gold Mine (“AGM”) from subsidiaries of Gold Fields Limited (“Gold Fields”) (JSE:GFI) (NYSE:GFI), one of the world’s largest gold producers and the second largest gold producer in Ghana.
Under the various transaction agreements (“Transactions”), Asanko and Gold Fields will, among other things, form an incorporated 50:50 corporate JV which will own Asanko’s 90% interest in the Asanko Gold Mine (the “AGM”) and all associated properties in Ghana. The Government of Ghana will continue to hold a free-carried 10% interest. In addition to the JV interest, Gold Fields will purchase a 9.9% shareholding interest in Asanko for approximately US$17.6 million to purchase 22,354,657 shares at approximately US$0.79, equal to the 5-day VWAP as of market close on March 27, 2018. Asanko will host an investor conference call at 9am ET today, details below.