Asanko Gold completes US$17.6 million private placement by Gold Fields for 9.9% interest in Asanko
Friday, Apr 06, 2018
Asanko Gold Inc.  is pleased to announce that it has completed the previously announced private placement with Gold Fields Limited, pursuant to which a subsidiary of Gold Fields has acquired a 9.9% interest in Asanko. The private placement involved the issue of 22,354,657 common shares of Asanko at a price of approximately US$0.79 (C$1.01) per share for total aggregate proceeds of US$17.6 million.

Concurrent with the completion of the private placement, Asanko entered into an investor rights agreement with the Gold Fields subsidiary which provides certain rights to Gold Fields to participate in future Asanko share issuances in order to maintain its 9.9% shareholding for up to five years. In addition, Gold Fields has agreed that it will standstill at this level of ownership for a one year period unless Asanko otherwise consents, and will support Asanko management nominees at shareholder meetings.  

The completion of the private placement is the first step in the series of transactions under which Asanko and Gold Fields will, among other things, form an incorporated 50:50 joint venture in the Asanko Gold Mine (the “JV Transaction”). Completion of the JV Transaction remains subject to customary conditions precedent including that no material adverse event occurs and the Ghanaian Minister of Lands and Natural Resources does not object. Completion of the JV Transaction is expected to occur before the end of Q3 2018.

The private placement shares are subject to a four month hold period in Canada.  The shares were not and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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