Receives US$5 Million Strategic Investment From Asante Gold
Roscan Gold Corporation (TSXV: ROS) has received US$5 million in backing from Asante Gold Corporation to advance the company’s 100%-owned Kandiole Gold Project in West Mali.
Asante has agreed to subscribe for and purchase 22.1 million common shares at a price of C$0.29 per share for aggregate gross proceeds of US$5 million, resulting in Asante owning approximately 6.7% of Roscan’s outstanding common shares.
Roscan President and CEO, Nana Sangmuah, said the company is pleased to welcome Asante as a strategic investor.
“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 land package, and with minimal dilution.”
Asante President and CEO, Douglas MacQuarrie, said Roscan’s 100% owned Kandiole Gold Project is located in one of the most prolific gold jurisdictions in West Africa and shows a high potential to define substantial gold mineral resources.
“With this financing, Asante’s shareholders gain exposure to large exploration upside potential, and at a very attractive entry point.”
Roscan remains the sole owner of the Kandiole Gold Project and will continue to be the operator. The company will use the proceeds of the strategic investment to fund its exploration programme towards maiden resources over its 401.8km2 of area and multiple high potential targets.
In connection with the strategic investment, Asante and Roscan will enter into an investor rights agreement, whereby, subject to certain conditions, including time and ownership thresholds, Asante will have certain rights, including the right to appoint one Board member to Roscan’s Board of Directors. Under the investor rights agreement, for a period of 4 months, Asante has also agreed not to sell, transfer, offer or otherwise dispose of any shares without first notifying the company.
In addition, in the event of an equity financing subsequent to this offering of Common Shares, Asante will have the option to participate at a pro rata level so as to maintain their shareholder position in the Company. The shares acquired by Asante are for investment purposes and depending on market conditions, reformulation of plans and/or other relevant factors, it may elect to increase, decrease or dispose its shareholding position.
The closing of the strategic investment is expected to occur on or about October 15, 2021 and is subject to regulatory approval, including that of the TSX Venture Exchange.
In addition to Asante’s strategic investment, Roscan is in discussions with other strategic partners for additional investment of up to 19.9% of the company to fast-track unlocking the value proposition on the broader land package. While there is strong interest, there can be no guarantee that Roscan and the interested parties can reach mutually agreeable terms.
For further information please visit: https://roscan.ca/
