(All dollar amounts are United
States dollars unless otherwise stated)
VANCOUVER, Dec. 19, 2019 /PRNewswire/ - Asanko Gold Inc.
("Asanko" or the "Company") (TSX, NYSE American: AKG) is
pleased to announce that it has received the final $10 million payment from Gold Fields Limited
("Gold Fields") pursuant to the Joint Venture Agreement which was
concluded on July 31, 2018 whereby
Asanko and Gold Fields became 50:50 joint venture partners of the
Asanko Gold Mine ("AGM"), located in Ghana, West
Africa, which is operated by Asanko. This $10 million payment completes the receipt by
Asanko of the gross proceeds of $185
million associated with the 50:50 Joint Venture
Agreement.
In addition, with the significant capital expenditure program
completed at the AGM and the operations continuing to generate
positive free cashflow, the AGM has commenced returning invested
capital to the joint venture partners. The distribution in Q4
amounted to a total of $20 million
with $10 million paid to Asanko and
$10 million paid to Gold Fields.
It is expected that loan repayments going forward may be made
quarterly subject to certain liquidity tests.
"The combination of these two transactions has significantly
bolstered Asanko's balance sheet and we anticipate finishing the
year with approximately $35 million
in cash and receivables, with no debt," said Greg McCunn, Chief Executive Officer. "We
are pleased to see a return of our invested capital following a
significant multi-year period of capital investment at the AGM.
With improved confidence in the free cash flow generation of the
mine together with our balanced approach to capital allocation, we
have commenced returning a portion of excess corporate cash to
shareholders through a normal course issuer bid which we announced
in November."
The normal course issuer bid ("NCIB") which allows the Company
to purchase up to 11,310,386 common shares, representing 5% of
Asanko's then issued and outstanding common shares (226,207,730
common shares), commenced on November
15, 2019. To date the Company has purchased 0.9
million shares at the market price at the time of acquisition in
accordance with the rules and policies of the TSX and NYSE American
and applicable securities laws. Refer to the press release
dated November 12, 2019 "Asanko Gold
Receives TSX Approval for Normal Course Issuer Bid" for further
details on the NCIB.
About Asanko Gold Inc.
Asanko is focused on building a low-cost, mid-tier gold mining
company through organic production growth, exploration and
disciplined deployment of its financial resources. The company
currently operates and manages the Asanko Gold Mine, located in
Ghana, West Africa which is jointly owned with Gold
Fields Ltd. The Company is strongly committed to the highest
standards for environmental management, social responsibility, and
health and safety for its employees and neighbouring communities.
For more information, please visit www.asanko.com.
Forward-Looking and other Cautionary Information
Certain statements and information contained in this news
release constitute "forward-looking statements" within the meaning
of applicable U.S. securities laws and "forward-looking
information" within the meaning of applicable Canadian securities
laws, which we refer to collectively as "forward-looking
statements". Forward-looking statements are statements and
information regarding possible events, conditions or results of
operations that are based upon assumptions about future conditions
and courses of action. All statements and information other than
statements of historical fact may be forward looking statements. In
some cases, forward-looking statements can be identified by the use
of words such as "seek", "expect", "anticipate", "budget", "plan",
"estimate", "continue", "forecast", "intend", "believe", "predict",
"potential", "target", "may", "could", "would", "might", "will" and
similar words or phrases (including negative variations) suggesting
future outcomes or statements regarding an outlook.
Forward-looking statements in this news release include, but
are not limited to: statements with respect to the AGM LOM plan,
including in respect of anticipated mine life, gold production,
anticipated resource and reserve levels and the evolving nature of
the AGM LOM plan; statements with respect to the estimated
recoverable amount of the AGM and the assumptions applied in
assessing the recoverable amount of the AGM; estimates of the
amount of gold production from AGM in 2019; statements in respect
of AGM's generation of free cash flow; statements regarding our
expectations to sweep cash from the joint venture and generating a
return of invested capital; statements in respect of the future
strength of Asanko's balance sheet; and cost estimates, including
that Asanko's AISC and stripping costs related to AGM will be
reduced in Q4 2019. Such forward-looking statements are based on a
number of material factors and assumptions, including, but not
limited to: the accuracy of reserve and resource, grade, mine life,
cash cost, net present value, internal rate of return and
production and processing estimates and other assumptions,
projections and estimates made in the technical reports for the AGM
or in respect of AGM; the successful completion of development and
exploration projects, planned expansions or other projects within
the timelines anticipated and at anticipated production levels;
that mineral resources can be developed as planned; that the
Company's relationship with joint venture partners will continue to
be positive and beneficial to the Company; interest and exchange
rates; that required financing and permits will be obtained;
general economic conditions; that labour disputes or disruptions,
flooding, ground instability, geotechnical failure, fire, failure
of plant, equipment or processes to operate are as anticipated and
other risks of the mining industry will not be encountered; that
contracted parties provide goods or services in a timely manner;
that there is no material adverse change in the price of gold or
other metals; competitive conditions in the mining industry; title
to mineral properties; costs; taxes; the retention of the Company's
key personnel; and changes in laws, rules and regulations
applicable to Asanko.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause actual results,
performance or achievements to differ materially from those
anticipated in such forward-looking statements. The Company
believes the expectations reflected in such forward-looking
statements are reasonable, but no assurance can be given that these
expectations will prove to be correct and you are cautioned not to
place undue reliance on forward-looking statements contained
herein. Some of the risks and other factors which could cause
actual results to differ materially from those expressed in the
forward-looking statements contained in this news release, include,
but are not limited to: mineral reserve and resource
estimates may change and may prove to be inaccurate; life of mine
estimates are based on a number of factors and assumptions and may
prove to be incorrect; AGM has a limited operating history and is
subject to risks associated with establishing new mining
operations; sustained increases in costs, or decreases in the
availability, of commodities consumed or otherwise used by the
Company may adversely affect the Company; actual production, costs,
returns and other economic and financial performance may vary from
the Company's estimates in response to a variety of factors, many
of which are not within the Company's control; adverse geotechnical
and geological conditions (including geotechnical failures) may
result in operating delays and lower throughput or recovery,
closures or damage to mine infrastructure; the ability of the
Company to treat the number of tonnes planned, recover valuable
materials, remove deleterious materials and process ore,
concentrate and tailings as planned is dependent on a number of
factors and assumptions which may not be present or occur as
expected; the Company's operations may encounter delays in or
losses of production due to equipment delays or the availability of
equipment; the Company's operations are subject to continuously
evolving legislation, compliance with which may be difficult,
uneconomic or require significant expenditures; the Company may be
unsuccessful in attracting and retaining key personnel; labour
disruptions could adversely affect the Company's operations; the
Company's business is subject to risks associated with operating in
a foreign country; risks related to the Company's use of
contractors; the hazards and risks normally encountered in the
exploration, development and production of gold; the Company's
operations are subject to environmental hazards and compliance with
applicable environmental laws and regulations; the Company's
operations and workforce are exposed to health and safety risks;
unexpected costs and delays related to, or the failure of the
Company to obtain, necessary permits could impede the Company's
operations; the Company's title to exploration, development and
mining interests can be uncertain and may be contested; the
Company's properties may be subject to claims by various community
stakeholders; risks related to limited access to infrastructure and
water; the Company's exploration programs may not successfully
expand its current mineral reserves or replace them with new
reserves; the Company's common shares may experience price and
trading volume volatility; the Company's revenues are dependent on
the market prices for gold, which have experienced significant
recent fluctuations; the Company may not be able to secure
additional financing when needed or on acceptable terms; Company
shareholders may be subject to future dilution; risks related to
changes in interest rates and foreign currency exchange rates;
changes to taxation laws applicable to the Company may affect the
Company's profitability and ability to repatriate funds; the
Company's primary asset is held through a joint venture, which
exposes the Company to risks inherent to joint ventures, including
disagreements with joint venture partners and similar risks; risks
related to the Company's internal controls over financial reporting
and compliance with applicable accounting regulations and
securities laws; the carrying value of the Company's assets may
change and these assets may be subject to impairment charges; the
Company may be liable for uninsured or partially insured losses;
the Company may be subject to litigation; the Company may be
unsuccessful in identifying targets for acquisition or completing
suitable corporate transactions, and any such transactions may not
be beneficial to the Company or its shareholders; the Company must
compete with other mining companies and individuals for mining
interests; and risks related to information systems security
threats.
Although the Company has attempted to identify important
factors that could cause actual results or events to differ
materially from those described in the forward-looking statements,
you are cautioned that this list is not exhaustive and there may be
other factors that the Company has not identified. Furthermore, the
Company undertakes no obligation to update or revise any
forward-looking statements included in, or incorporated by
reference in, this news release if these beliefs, estimates and
opinions or other circumstances should change, except as otherwise
required by applicable law.
Neither Toronto Stock Exchange nor the Investment Industry
Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this
release.
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SOURCE Asanko Gold Inc.