Asanko Gold further strengthens balance sheet (All dollar amounts are
Asanko Gold further strengthens balance sheet
(All dollar amounts are
United States
dollars unless otherwise stated)
VANCOUVER
,
Dec. 19, 2019
/CNW/ -
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.
View original content:
http://www.newswire.ca/en/releases/archive/December2019/19/c4807.html
%SEDAR: 00015923E
For further information:
Enquiries: Lynette Gould, SVP Investor Relations, Toll-Free (N.America): 1-855-
246-7341, Telephone: +1 778 729 0608, Email: [email protected]
CO: Asanko Gold Inc.
CNW 07:30e 19-DEC-19