Asante Gold's (CVE:ASE) chief executive Douglas MacQuarrie has added to his position in the company once more, now holding some 25% of the junior gold explorer, which is awaiting a key decision that has the potential to move its stock.
MacQuarrie is clearly confident in the company's prospects, acquiring 680,300 common shares from January 13 to November 18 this year, at prices between 26.5 and 9 cents per share. He now owns a total of 5.15 million shares, 250,000 warrants and 300,000 stock options, which represents about 24.8% of the company, on a partially diluted basis.
The company is less than one month away from some big news in the week of December 16, when a decision on an arbitration is due that will spell the fate of a deal to acquire half of the 2 percent NSR royalty Goknet Mining Company holds on PMI Gold's (TSE:PMV) (TSX:PMV) Obotan gold project in Ghana.
In late March, Asante said that Goknet, the royalty holder, had not yet received the necessary consent for the deal, and that it had referred the matter to binding arbitration. In November last year, Asante announced it would buy a 1 percent royalty from Goknet for $22.5 million in stock.
"We're feeling incredibly optimistic that Goknet will win the arbitration, and that we'll be back on track to rolling the royalty into the company," MacQuarrie told Proactiveinvestors in an interview last month.
"It's a super deal that is expected to bring $4 million a year of income to the company."
Based on the Obotan project feasibility study published by PMI Gold, the mine is expected to produce a total of 2.26 million ounces of gold over a 11.5 year open pit mine life starting in the first half of 2015. The gold mineralization is known to extend to depth under the proposed main pit and additional mine life/royalty payments are anticipated.
Aside from the potential money-making royalty, Asante also holds a 100% interest in the Fahiakoba property - a 22.07 square km prospecting license located on strike with and between Perseus Mining’s 6.6 million ounce Edikan Mine and AngloGold Ashanti’s 60 million ounce Obuasi Mine.