Asante Gold rejects Fujairah’s interest to buy all shares issued by the gold firm

Asante Gold rejects Fujairah’s interest to buy all shares issued by the gold firm

Asante Gold Corporation announced that it has received an unsolicited, non-binding and conditional expression of interest from Fujairah Holding LLC, which owns 11.43% of the outstanding shares of the Company, expressing an interest in acquiring all of the Company’s issued and outstanding common shares not held by Fujairah, which the Board of Directors of the Company has reviewed and determined is  not in the best interests of the Company or its shareholders. 

In response to the Non-Binding Expression of Interest, the Board formed a special committee of  independent directors to review the Non-Binding Expression of Interest. 

Cash consideration was contemplated in the Non-Binding Expression of Interest at a price of C$2.20 per  common share. Following a review, in consultation with the Company’s financial and legal advisors, the  Board has determined that the Non-Binding Expression of Interest is highly conditional and fails to address  Asante’s near-term financing requirements. 

The Non-Binding Expression of Interest was subject to the fulfilment of a number of conditions, including  the completion of satisfactory due diligence during a lengthy exclusivity period, negotiation of a definitive  agreement, and receipt of all required regulatory and shareholder approvals.

The Non-Binding Expression  of Interest also required Asante to cease all existing discussions and negotiations with all persons other than  Fujairah in respect of any debt or equity financing of any kind, which was an unacceptable condition that  would have required the Company to cease various alternatives that it has been advancing to satisfy its near term financing requirements. 

The Company has no indication as to Fujairah’s current intentions, including whether it intends to submit  an additional proposal or otherwise attempt to acquire the Company’s common shares.

The Company does  not undertake any obligation to provide any updates with respect to the Non-Binding Expression of Interest  or any other proposals, except as required under applicable law.

Meanwhile, Asante Gold has announced increment in its outstanding shares to 435m from the previous figure of 378m.