Asante Gold Corporation shares surged 23% to $1.85 on Friday after the gold exploration and development company announced that it has received an unsolicited, non-binding and conditional expression of interest from Fujairah Holding LLC, which owns 11.43% of Asante's stock, to acquire the remaining issued and outstanding common shares of the company not already held by Fujairah.
Asante said the cash consideration contemplated equates to C$2.20 per share, but its board has determined the offer is not in the best interests of the company or its shareholders and fails to address Asante's near-term financing requirements.
The company noted the non-binding expression of interest also requires 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 it called “unacceptable”.
Asante added that it intends to continue pursuing financing alternatives.
Asante Gold is currently operating the Bibiani and Chirano gold mines in Ghana with combined forecast production of about 400,000 ounces of gold for 2023.
Contact Sean at sean@proactiveinvestors.com