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Roscan Gold Announces US$5.0 Million Strategic Investment by Asante Gold Corporation
TORONTO, ON / ACCESSWIRE / September 23, 2021 / Roscan Gold Corporation ("Roscan" or the "Co...
About this update from Roscan Gold Corporation
[{"type":"text","content":"Roscan Gold Announces US$5.0 Million Strategic Investment by Asante Gold CorporationTORONTO, 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$5.0 million strategic investment by Asante Gold Corporation (\"Asante\") (ASE)(1A9)(ASGOF), 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$5,000,000 (approximately C$6,400,000 as at September 22, 2021), resulting in Asante owning approximately 6.7% of Roscan's outstanding common shares. The C$0.29 price per share reflects a 14% premium to the closing price on September 22, 2021.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 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 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 a...