Asanko Gold has completed transactions with subsidiaries of Gold Fields for a 50% joint venture interest in Asanko’s 90% interest in the Asanko Gold Mine and its associated properties in Ghana, West Africa.
Image: A gold mineral. Photo: courtesy of carlos aguilar/Freeimages.com.
Upon closing of the Transaction, Asanko received US$165 million in cash from Gold Fields, with the remaining US$20 million receivable in cash upon achievement of an agreed Esaase development milestone but in any event by no later than December 31, 2019. As previously announced, the Transaction will impact the recognition, presentation and measurement of assets and liabilities associated with Asanko’s Ghanaian operations. The Company expects to record a non-cash loss associated with the loss of control of the AGM and associated properties in Q2 2018, which is expected to be approximately $0.60 to $0.80 per share.
Peter Breese, President and CEO, said “Today marks an important milestone for Asanko as we conclude our JV Transaction with Gold Fields and emerge completely debt-free, with a strong partner, a solid long life production base, competitive cost profile, fully funded organic growth and significant exploration potential.
“In anticipation of the closing of the transaction we have already established the various working groups with our new partners to ensure that the AGM continues to operate in an efficient manner. Once again we would like to thank the Ghanaian Government for all their assistance in facilitating the completion of this transaction well ahead of schedule.”
Repayment of the Red Kite Debt
Following the receipt of the cash proceeds pursuant to the Transaction, Asanko has repaid in full all outstanding principal and capitalized interest owing to EXP T2 Ltd. (“Red Kite”) under the Definitive Senior Facilities Agreement. There were no penalties associated with the repayment of the Red Kite debt. Red Kite’s current gold offtake agreement remains in effect until all outstanding ounces have been delivered to Red Kite or the joint venture elects to terminate the offtake and pay the associated termination fee.
Source: Company Press Release