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Friday, 3 May 2013
Asante Gold says arbitration on PMI Gold royalty transaction progressing
Asante Gold Corp (CVE:ASE) updated investors Friday on its previously announced transaction to acquire the 1 percent royalty Goknet Mining Company holds on PMI Gold's (TSE:PMV) Obotan gold project in Ghana, saying that a decision will be made in the near term.
In late March, Asante said that Goknet, the royalty holder, haf not yet received the necessary consent for the deal, and that it had referred the matter to binding arbitration.
In a statement Friday, Asante told investors the Goknet's arbitration with PMI Gold, with respect to PMI's consent to the assignment of the 1 percent royalty to Asante, is "progressing" with the full panel of arbitrators now selected.
The Goknet/PMI agreement calls for a decision of the majority of the arbitrators to be made within 30 days, with further updates to be issued when and as received, the company said.
In November last year, Asante announced it would buy the 1 percent royalty from Goknet Mining Company holds on the PMI property for consideration of $22.5 million in stock.
Also today, Asante said it has inked a loan agreement with Goknet, under which Goknet will loan the company C$200,000 for working capital needs, payable within 60 days of demand, with interest at a rate of 5 per cent per year.
CEO of Asante, Douglas R. MacQuarrie, is also a manging director of Goknet.
Finally, Asante updated investors Friday on the approval and adoption by its board of an Advance Notice Policy, designed to provide shareholders with a "clear framework" for nominating directors of the company, it said.
The policy fixes a deadline by which director nominations must be submitted to the company prior to any annual or special meeting of investors. Asante said it will seek shareholder ratification of the policy at its next annual general meeting.
Aside from the royalty on the PMI property, for which first gold production is projected next year, the gold junior is also exploring the Fahiakoba Concession located in the centre of Ghana's Golden Triangle between Perseus Mining's (TSE:PRU) (ASX:PRU) 280,000 ounce-per-year Edikan gold mine, and AngloGold Ashanti's (NYSE:AU) 315,000 ounce-per-year Obuasi gold mine.