Ashanti Gold to Acquire 100% of Kossanto East Project
VANCOUVER, BC – August 8, 2017 Ashanti Gold Corp. (“Ashanti” or the “Company”) - (TSXV: AGZ) is pleased to announce it has entered into an agreement to purchase 100% of the Kossanto East Project (the “Project”) from Alecto Minerals PLC (“Alecto”). For a purchase price of CAD $1 million, Ashanti will have full ownership of the Kossanto East Project, while Alecto will retain a 1.5% Net Smelter Return (“NSR”). Ashanti has the right to purchase some or all of the 1.5% NSR by paying to Alecto $100,000 for each 0.1% NSR purchased (the “NSR”). The government of Mali has a carried 10% interest in all minerals and mining concessions in Mali, thus the 100% interest in the Project will be a net interest of 90% for Ashanti Gold.
The Company currently holds an option to acquire a 65% interest in the Project upon completion of a pre-feasibility study within three years, while Alecto would retain the NSR (see press release November 28, 2016). Upon closing of the acquisition, the prior option agreement will terminate.
Tim McCutcheon, CEO, says: “We are extremely happy to be able to make this acquisition. There was a one-time special situation whereby Ashanti could take title to Kossanto in a very favorable transaction, and we decided to take advantage of this opportunity.”
About Kossanto East Project
The Project is a 66.41 km2 concession in the prolific Kenieba Inlier, the northwestern-most exposure of Birimian rocks in West Africa. The Project has six known pods of mineralization. Two have been partially explored by past operator, Alecto Minerals PLC. Ashanti completed a 53 hole, 6,073 metre drill program in June - July 2017 and is announcing drill results as available (see press releases July 10, 2017 and August 2, 2017). The Kenieba Inlier is a major geological province for gold mineralization. Over the last twenty-five years more than 40M ounces of gold has been discovered in proximity to key structures resulting in the construction of multiple mines, including the world class Loulo, Sadiola, Yatela, Gounkoto, Segala and Tabakoto (see Figure 1).
Figure 1: Regional geologic map of the Kedougou-Kenieba Inlier, the most northwesterly exposure of Birimian rocks in the West African craton. The Kossanto East property lies between two regional structures, the Senegal-Mali Shear Zone and the Main Transcurrent Shear Zone both of which feature prominently in localizing mineralization for numerous gold deposits. Structural relationships on the property suggest that structures parallel to these shear zones pass through the property and control mineralization.
ABOUT ASHANTI GOLD
Ashanti is a gold-focused, exploration and development company with advanced projects in the northern Ashanti Belt of Ghana and the Kenieba Belt of Mali. The Company targets projects where existing work demonstrates attractive potential for near-term mine development and where it has a competitive advantage due to past work experience of the team and specific project know-how.
On Behalf of the Board of Directors of
ASHANTI GOLD CORP.
For further information, please contact:
Ashanti Gold Corp.
2300 – 1177 West Hastings Street
Vancouver BC, V6E 2K3
Qualified Person and Quality Control/Quality Assurance
Dr. Paul Klipfel, CPG (AIPG certification #10821), Ashanti’s COO and Chief Geologist is a Qualified Person as defined by Canadian NI 43-101 and has supervised the preparation of the scientific and technical information that forms the basis for this news release. Dr. Klipfel is responsible for all aspects of the work including the Quality Control/Quality Assurance programs. Dr. Klipfel is not an Independent Person, as he is a shareholder of Ashanti.
Cautionary Statement on Forward-Looking Information
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains forward-looking statements and forward-looking information (collectively, "forward looking statements") within the meaning of applicable Canadian securities legislation. All statements herein, other than statements of historical fact, including, without limitation, statements regarding the anticipated purchase of a 100% interest in the Project and the Company’s ability to finance such acquisition, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that it will be successful in those regards.