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Ashanti Gold receives shareholder approval for Desert Gold deal

The deal is still subject to regulatory approvals and is conditional on Ashanti being granted a new exploration license over the Kossanto East licence area
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A special meeting of shareholders took place yesterday

Ashanti Gold Corp (CVE:AGZ) (OTCMKTS:GULSF) confirmed it had received shareholder approval after a special meeting for its sale to Desert Gold Ventures Inc (CVE:DAU) and the transaction is expected to close by the end of May.

The deal is  still subject to regulatory approvals and is conditional on Ashanti being granted a new exploration license over the Kossanto East licence area in western Mali, for which  yesterday it received  a three-month exclusive grant.

READ: Ashanti said it will now file the appropriate paperwork to receive a full seven-year exploration licence

Ashanti said it will now file the appropriate paperwork to receive a full seven-year exploration licence over the Kossanto East licence area.

Desert Gold will acquire all of the issued and outstanding Ashanti shares on the basis of 0.2857 Desert Gold shares for each Ashanti share. The stock deal is valued at C$3.8 million.

The deal will mean a combined, bigger, land package for both companies.

Tim McCutcheon, Ashanti’s CEO, has said previously: "This bigger land package encompasses major geological structures in the area, similar to other structures that have given the industry multiple large gold deposits.

"Since the Letter of Intent was announced, investor interest has been high and we look forward to creating value for Ashanti and Desert Gold shareholders through the completion of the business combination."

Contact Giles at [email protected]

Follow him on Twitter@Gile74

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