Roscan Gold Corporation (TSXV: ROS) announced today the completion of the previously announced strategic investment by Asante Gold Corporation (CSE: ASE). The investment is reported to be worth $6.4 million and is intended to advance the company’s 100%‐owned Kandiole gold project in West Mali.
Under the terms, Asante Gold subscribed 22.1 million Roscan Gold common shares at $0.29 per share. This results in Asante Gold owning approximately 6.3% of the outstanding Roscan Gold common shares.
“We are delighted with the financial closing of the strategic investment. This new strategic investment increases our ability to unlock the substantial value at the Kandiole Project with a proven mine building team and a dominant land position in a prolific mining camp,” said Roscan Gold CEO Nana Sangmuah.
Still within the agreement, after one year or when Asante Gold effectively owns less than 5% equity, whichever comes first, Asante Gold will vote in accordance with the recommendations made by the Roscan Gold management or the board of directors.
Roscan Gold last traded at $0.28 on the TSX Venture.
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