Asante Gold makes US$5 million investment in Roscan

Asante Gold (CSE: ASE; US-OTC: ASGOF)  has made a US$5 million strategic investment in fellow West African gold explorer Roscan Gold (TSXV: ROS; US-OTC: RCGCF)), which holds a significant land position within a gold prospective area of West Mali.

Roscan’s primary asset is the Kandiolé project, located east of B2Gold’s (TSX: BTO; NYSE-AM: BTG) Fekola mine and Iamgold’s (TSX: IMG; NYSE: IAG) Boto and Diakha deposits, and north of Iamgold’s Siribaya deposit.

“Roscan’s 100% owned Kandiole gold project in West Mali is located in one of the most prolific and productive gold jurisdictions in Africa. Results to date show a high potential to define a substantial gold mineral resource,” Douglas MacQuarrie, Asante Gold’s president and CEO, commented in a press release. 

Asante currently operates in Ghana, where it is developing as many as six projects including the recently acquired Bibiani gold mine, which has past production of 4 million oz., and the Kubi gold mine adjoining AngloGold Ashanti (NYSE: AU) Obuasi mine to the south.

Under a binding term sheet, Asante has agreed to subscribe for and purchase 22.1 million of Roscan’s common shares at $0.29 per share, for a total investment of $6.4 million (US$5 million).

“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 401.8 sq. km land package,” Roscan president and CEO Nana Sangmuah stated in a press release. “Proceeds will be used to fund Roscan’s ongoing exploration program towards developing maiden resources on multiple high-potential targets.”