Asante Enters C$19.5m Joint Venture & Private Placement, Kubi Gold Project, Ghana

Asante Gold Corporation (CSE:ASE) announces that it has entered into an agreement with BXC Company (Ghana) Limited (“BXC”) to form the Kubi Gold JV, a 50:50 joint venture to develop the Kubi Mining Leases in Ghana towards production.

BXC, a wholly owned subsidiary of Beijing Fuxing Xiao-Cheng Electronic Technology Stock Co. Ltd. (“BFXC”), has agreed to provide C$19.5 million in funding to earn 50% of the Kubi Gold JV and a 30% equity interest in Asante. BXC will participate in a private placement (the “Private Placement”) by purchasing 16,468,400 or such other number of common shares necessary to give BXC a 30% equity interest in the then issued capital of the Company, at a price of C$0.20 per share, subject to the approval of the Canadian Securities Exchange (“CSE”). Asante will apply 10% of the proceeds of the Private Placement to its unallocated working capital, and the balance to complete its initial funding of the Kubi Gold JV. The agreement is subject to final due diligence and closing is expected by December 31, 2016.

Douglas R. MacQuarrie, President & CEO states, “We are extremely pleased to welcome BXC as our JV partner and major shareholder to move Kubi forward to production. Their successful operating history in Ghana and strong balance sheet will complement our strengths in gold exploration, discovery and development. Their commitment to secure future debt funding for the joint venture gives Asante a non-dilutive path forward to fully develop the potential of Kubi.”
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