SAO PAULO, Brazil (miningweekly.com) – Ghana-focused project developer Asante Gold has partnered with China-owned BXC to form the Kubi Gold joint venture (JV), a 50:50 JV that will develop the Kubi mining leases to production.
BXC is a subsidiary of Beijing Fuxing Xiao-Cheng Electronic Technology Stock, and has agreed to provide C$19.5-million in funding to earn a 50% stake in the Kubi Gold JV and a 30% equity interest in Asante.
"We are extremely pleased to welcome BXC as our JV partner and major shareholder to move Kubi forward to production. Their successful operating history in Ghana and strong balance sheet will complement our strengths in gold exploration, discovery and development. Their commitment to secure future debt funding for the JV gives Asante a nondilutive path forward to fully develop the potential of Kubi,” stated president and CEO Douglas MacQuarrie.
BXC will participate in a private placement giving it a 30% equity interest in the then issued capital of the company, at a price of C$0.20 a share.
Asante said it would apply 10% of the proceeds of the private placement to its unallocated working capital, and the balance to complete its initial funding of the Kubi Gold JV. The agreement is subject to final due diligence and closing is expected by December 31.
BXC has also committed to provide additional funding to the Kubi Gold JV on reasonable commercial terms, for the construction of additional facilities such as a production shaft, full processing facilities or expansion.
A December 2010 Canadian National Instrument 43-101-compliant resource estimate for the Kubi Main gold deposit has calculated measured resources of 660 000 t, grading 5.3 g/t for 112 000 oz; indicated resources of 660 000 t, grading 5.65 g/t for 121 000 oz; and inferred resources of 670 000 t, grading 5.31 g/t for 115 000 oz.