Asanko Gold Receives Approval for JV transaction
Asanko Gold announces that it has received approval from the Ghanaian Minister of Lands and Natural Resources, whose approval was the principal condition to the closing of Asanko’s previously announced joint venture transaction with Gold Fields Limited for a 50% interest in Asanko’s 90% interest in the Asanko Gold Mine in Ghana, West Africa.
Completion of the Transaction is now expected in early July, 2018. The final form of the joint venture agreement will be publically filed after completion. Completion now remains subject only to certain customary closing documentation and a lender’s consent from Exp T2 Ltd, which are all expected to be in-hand in the ordinary course before the targeted completion time.
Red Kite has agreed to defer the first principal repayment, approximately US$20 million, due on July 1, 2018 until August 1, 2018 to facilitate the Transaction. Asanko intends to use the cash proceeds from the Transaction to repay in full all outstanding principal and accrued interest (US$164 million) owing to Red Kite under the Definitive Senior Facilities Agreement. There are no early repayment penalties associated with the Red Kite debt.
Peter Breese, President and CEO, said “I’d like to thank the Minister of Lands and Natural Resources for expediting approval of our Joint Venture transaction with Gold Fields and our in-country advisors, Kimathi and Partners, who have guided us through this approval process. Upon conclusion of this Transaction and repayment of the Red Kite debt facility, we will be debt-free and poised to grow our business and expand our production base.”
