Asante Gold (CVE:ASE) is raising up to $500,000 for working capital, the company said Thursday.
The private placement offering will consist of up to 6.66 million units at 7.5 cents apiece, and will be made to existing shareholders of the company in Canada, Asante said.
Each unit will be made up of one common share and one half of a share purchase warrant, with every full warrant good for an additional share at a price of 15 cents for a period of two years.
The company said that the new funds would be used for working capital needs, with the private placement still subject to the necessary stock exchange approvals.
Asante was recently in the news after appointing Alex Heath as a director of the company, who also serves as a member of the special committee, which continues to monitor the company's deal to acquire half of the 2% NSR royalty Goknet Mining holds on PMI Gold's Obotan gold project.
PMI Gold was acquired by Asanko Gold (TSE:AKG) earlier this year, with the Obotan deposit in Ghana now a part of the new Asanko Gold Mine, which includes Asanko's Esaase deposit.
The royalty acquisition on Obotan was initially announced in November 2012, with completion of the purchase still subject to certain closing conditions. In March 2013, Asante said that Goknet, the royalty holder, had not yet received the necessary consent for the deal, and that it had referred the matter to binding arbitration.
A decision on the arbitration proceedings to affirm Goknet's royalty interests in the Obotan project in Ghana was originally expected in December, but was delayed to September this year pending the re-appointment of an arbitrator by PMI, Asante said in January.
