- Mining company Asante Gold (ASE) is planning to conduct a private placement for up to C$1.3 million in proceeds
- The company hopes to issue up to 13 million units to accredited and exempt investors at ten cents each
- Each of Asante Gold’s units will consist of common share in the company, and one common share purchase warrant
- The company will primarily use the proceeds to fund further exploration at its gold projects in Ghana
- Asante Gold (ASE) last traded on October 14 for ten cents per share
Mining company Asante Gold (ASE) is planning to conduct a private placement for up to C$1.3 million in proceeds.
Through the private placement, the company hopes to issue up to 13 million of its units to accredited and exempt investors. Directors and officers of Asante Gold will be allowed to take part in the private placement, with such participation being considered a “related party transaction”.
At ten cents a pop, a full issue from the company’s private placement should result in aggregate gross proceeds of up to $1.3 million.
Each unit in Asante Gold will contain one common share in the company, as well as one common share purchase warrant.
Each warrant will allow the holder to buy one more common share in the company, at an exercise price of $0.22 each. The warrants may be exercised at any time during the 24 months which immediately follow the private placement’s closing date.
Asante Gold is relying on exemptions from the prospectus requirements and applicable securities laws to issue the shares. All securities which are bought through the offering will be subject to a hold period of four months and one day.
Once the private placement is complete, Asante Gold plans to primarily use its proceeds to fund further exploration at its gold projects in Ghana. In particular, the money will help expand and develop the company’s Kubi Gold project to production.
Some of the funds will also go towards the company’s general working capital purposes.
Asante Gold (ASE) last traded on October 14 for ten cents per share.