Ghana-focused Asante Gold said on Thursday that it had received an unsolicited, nonbinding and conditional expression of interest from Fujairah Holding, expressing an interest in acquiring the gold mining company.
Fujairah is a sovereign wealth fund in the United Arab Emirates (UAE) and currently 11.43% of the outstanding shares of Asante.
Asante, which operates the Bibiani and Chirano gold mines, in Ghana, said its board had determined that the offer was not in the best interest of the company or its shareholders.
The expression of interest is highly conditional and fails to address Asante’s near-term financing requirements, the company said, adding that it also required the miner to cease existing discussions and negotiations with all persons other than Fujairah in respect of any debt or equity financing of any kind.
“[This] 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,” said Asante.
The company noted that the expression of interest was also subject to the fulfilment of several other 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.