TSX-listed Asante Gold has revealed that it has been informed by Ghana-based gold miner Goknet Mining Company that it has not yet received the necessary third party consent regarding Asante Gold’s acquisition of a 1% Net Smelter Return (NSR) royalty interest in the Obotan Gold mine project in Ghana.

The royalty holder, Goknet, has informed Asante Gold that because it has not yet received the necessary third party consent to the assignment of the royalty, it will take all actions necessary to obtain the consent. It has referred the matter to binding arbitration, with a determination expected by the end of April 2013.

Meanwhile, Asante Gold said in a statement that Goknet has confirmed to the company that it holds a 2% NSR royalty interest in all the concessions held by PMI Gold and its subsidiaries on the Asankrangwa gold belt in Ghana, including all the concessions and mining leases which make up PMI’s Obotan gold project.

It also noted that PMI Gold’s feasibility study dated September 17, 2012, which was prepared for PMI Gold by GR Engineering Services, and filed on Sedar on September 19, 2012, has an allowance for the payment of US$205.6 million in royalty payments over the 11.5-year life of mine, which equals 7% (5% reserved for the Government of Ghana, and 2% reserved for Goknet) of the life of mine project revenue of US$2.9 billion (total of 2.26 million recovered oz of gold ).

In November 2012, Asante Gold also anticipated that a private placement funding of up to US$2 million would be announced for working capital purposes.

The company said that it anticipates that sufficient working capital will be available from the exercise of outstanding private placement warrants that are currently priced near market and that no additional equity offering will be undertaken at this time.

Additional Reading?

Request Free Copy