Under the terms of the agreement, Asante will subscribe for 22.1 million common shares at a price of C$0.29 per Roscan common share, giving Asante a 6.7% interest in the junior company.
Asante would have the right to appoint one representative to the Roscan board, and has agreed not to dispose of any of its Roscan shares for a period of four months.
“We are pleased to welcome Asante as a strategic investor in Roscan. 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. Proceeds will be used to fund Roscan’s ongoing exploration program towards developing maiden resources on multiple high potential targets,” said Roscan president and CEO Nana Sangmuah.
“Results to date show a high potential to define a substantial gold mineral resource. With this investment, Asante’s shareholders gain exposure to Roscan’s large exploration upside, and at a very attractive entry point.”