“Roscan’s 100% owned Kandiole gold project in West Mali is located in one of the most prolific and productive gold jurisdictions in Africa. Results to date show a high potential to define a substantial gold mineral resource,” Douglas MacQuarrie, president and CEO of Asante, said in a news release.
Asante currently operates in Ghana, where it is developing as many as six projects including the recently acquired Bibiani gold mine, which has past production of 4Moz, and the Kubi gold mine adjoining AngloGold’s Obuasi mine to the south.
Under a binding term sheet, Asante has agreed to subscribe for and purchase 22.1 million of Roscan’s common shares at C$0.29 per share, for a total investment of C$6.4 million ($5 million).
Commenting on the announcement, Roscan president and CEO Nana Sangmuah stated: “The investment by Asante introduces a rapidly growing partner with solid African-based assets and strong connections with alternative pools of capital to help us unlock value on our highly prospective 401.8 sqkm land package.”
“Proceeds will be used to fund Roscan’s ongoing exploration program towards developing maiden resources on multiple high-potential targets,” he added.
Roscan’s shares surged 5.9% by 12:10 p.m. EDT following the Asante investment, giving the company a market value of C$87.1 million.
