Roscan Gold Announces US$5.0 Million Strategic Investment by Asante Gold Corporation
Roscan Gold Corporation announces a strategic investment of US$5 million by Asante Gold Corporation to advance its Kandiole Gold Project in West Mali. Asante will purchase 22.1 million common shares at C$0.29 per share, equating to approximately 6.7% ownership in Roscan. The investment supports exploration efforts over 401.8 km² of prospective land. The deal includes an investor rights agreement allowing Asante to appoint a board member. Closing is expected around October 15, 2021, pending regulatory approval.
- Strategic investment of US$5 million enhances Roscan's financial position.
- Asante's investment indicates confidence in the Kandiole Gold Project's potential.
- Transaction allows Roscan to fund exploration over a substantial area of 401.8 km².
- None.
TORONTO, ON / ACCESSWIRE / September 23, 2021 / Roscan Gold Corporation ("Roscan" or the "Company") (TSXV:ROS)(FSE:2OJ)(OTC PINK:RCGCF) is pleased to announce a US
Asante has agreed to subscribe for and purchase 22.1 million common shares at a price of C
Commenting on the announcement, Nana Sangmuah, President & CEO said: "We are pleased to welcome Asante as a strategic investor in the Company. 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."
Douglas MacQuarrie, President & CEO of Asante states: "Roscan's
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 program 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. The common shares will be subject to a statutory hold period in accordance with applicable securities legislation.
In addition to Asante's strategic investment, Roscan is in discussions with other strategic partners for additional investment of up to
About Roscan
Roscan Gold Corporation is a well-financed Canadian gold exploration company focused on the exploration and acquisition of gold properties in West Africa. The Company has assembled a significant land position of
For further information, please contact:
Nana Sangmuah
President & CEO
Email: clittle@roscan.ca
Forward-Looking Statements
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information is characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, and other risks involved in the mineral exploration and development industry, including those risks set out in the Company's management's discussion and analysis as filed under the Company's profile at www.sedar.com. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including that all necessary governmental and regulatory approvals will be received as and when expected. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The Company disclaims any intention or obligation to update or revise any forward-looking information, other than as required by applicable securities laws.
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.
SOURCE: Roscan Gold Corporation
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FAQ
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