Combined with Asanko's cash on hand of
The Agreement provides for two loan facilities: a
Project Facility Details (
-- Interest rate of LIBOR + 6% with a one percentage minimum LIBOR rate; -- 1.5% fee payable on drawdowns; -- Four year quarterly repayment schedule or early repayment at any time without penalty; and -- Conditions precedent to complete the first
US$60min drawdowns to be met by July 24, 2014are predominantly administrative and typical for a financing of this nature. -- Further conditions precedent to complete full drawdown include completion of the Phase 1 Definitive Project Plan with material outcomes substantially the same as the September 2012Definitive Feasibility Study2 ("DFS").
Overrun Facility Details (
-- Interest rate of LIBOR +10% with a one percentage minimum LIBOR rate; -- 3% fee payable on drawdowns; -- Three year quarterly repayment schedule and early repayment at any time without penalty; and -- Conditions precedent to drawdown are confirmation that the Company has sufficient funds with the Overrun Facility to complete Phase 1, that the Project Facility is fully drawn and that 4,000,000 Asanko share warrants have been issued to Red Kite. The warrants would be priced at a 25% premium to the 20 day volume weighted average price of Asanko at that time and have a 2.5 year term to expiry.
Offtake Agreement Details:
-- 100% of the future gold production from Phase 1 to a maximum of 2.22 million ounces; -- Red Kite to pay for 100% of the value of the gold ten business days after shipment; -- A provisional payment of 90% of the estimated value will be made one business day after delivery; -- The gold sale price will be a spot price selected during a nine day quotational period following shipment; -- Should the Company wish to terminate the Offtake Agreement, a termination fee will be payable according to a schedule dependent upon the total funds drawn under the Project and Overrun Facility as well as the amount of gold delivered under the Offtake Agreement at the time of termination, and -- Prior to removal of the conditions precedent for the Project Facility, the Company can terminate the agreement with Red Kite by repaying the loan and paying an Offtake termination fee which is fixed at
US$3 millionwhile US$20 millionis drawn (before December 31, 2014) and US$6 millionafter the additional US$40 millionis drawn.
For further information please visit www.asanko.com.
1. Estimated cash balance as at
June 30, 2014. 2. PMI Gold Corporation'sDefinitive Feasibility Study ("DFS") on the Obotan Project, published in September 2012. See filing on www.sedar.com
Asanko's vision is to become a mid-tier gold mining company that maximizes value for all its stakeholders. Asanko's flagship project is the fully financed, multi-million ounce
Asanko is managed by highly skilled and successful technical, operational and financial professionals. The Company is strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighboring communities.
About RK Mine Finance
RK Mine Finance provides mining companies with project financing and metal off-take agreements for initiation or expansion of mine production and is part of the Red Kite group. Red Kite operates across the global metals industry from offices in
Forward-Looking and other Cautionary Information
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address estimated resource quantities, grades and contained metals, possible future mining, exploration and development activities, are forward-looking statements. Although the Company believes the forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general economic and business conditions. For more information on the Company, Investors should review the Company's annual Form 20-F filing with the
FOR FURTHER INFORMATION PLEASE CONTACT: Asanko Gold Inc. Alex Buck Manager - Investor Relations +44-7932-740-452 firstname.lastname@example.org Asanko Gold Inc. Greg McCunn Chief Financial Officer +1-778-729-0604 email@example.com Asanko Gold Inc. General enquiries firstname.lastname@example.org RK Mine Finance Grant Gilmour Portfolio Manager +44 207 920 6185 Source:
Asanko Gold Inc.