Asante Gold Corp. (CNSX:ASE) said on Thursday it intends to complete an exploration campaign and working capital private placement of up to 5,555,555 units of the company at 18 cents per unit for aggregate gross proceeds of $1mln.
Each unit will consist of one common share of the company and one-half of a transferable common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share at an exercise price of 25 cents for 24 months from the closing date of the private placement. In the event that the private placement is oversubscribed, the company may increase the placement by up to 25%.
Proceeds from the private placement will be used for general working capital, including drilling and other work programs on the company's Keyhole, Betenase, Fahiakoba and Kubi projects in Ghana. Finders' fees may be payable on a portion of the offering. All securities purchased under this offering will be subject to a four-month-and-one-day hold period.
Certain directors and officers of the company may participate in the private placement.