Asante Gold (V.ASE) with an amazing Gold-Royalty acquisition- the cheapst junior on the Venture?!

Dear Readers and fellow Investors,

Let me ask you a question: If my Dad has a 150million in net worth and is a well recognized businessman with a great track record. I would now ask you to lend me 6million $ and my Dad promises you to pay you back from mid 2014 on a 4million per annum for at least the next 12 years minimum, but possibly even for the next 20 years. so Basically, for your initial investment of 6million, you`d recieve 48-80million bucks.

What would you say? Not possible? Such Chances don`t exists?

Well, they DO!

V.ASE – Asante Gold just recently a announced a deal which is more or less like the situation i described above.

Asante Gold Corporation: Acquisition of Obotan Gold Project 1% NSR Royalty Announced

http://www.marketwire.com/press-release/asante-gold-corporation-acquisition-of-obotan-gold-project-1-nsr-royalty-announced-tsx-venture-ase-1724611.htm

The most amazing point here is that, due to personal relationships from ASE`s management the deal is all-share based, with no cash component and values the shares of ASE @0,5Can$ while the stock was tradig at 0,2Can$!

But before we take a closer look at the 2014e cash-flowing Royalty aquisition announced last week, let me introduce the company and its Management to you.

KEY FACTS:

Website: http://www.asantegold.com/s/home.asp

Symbol: V.ASE – (current price 0,27Can$ as of Nov 17th)

Shares OS basic/fully diluted pre deal:  20,11million / 32,1million

Shares OS basic/fully diluted post deal: 65,11million / 77,1million

Marketcap pre deal fd: 8,67million Can$

Marketcap post deal fd: 20,81million Can$

Cash & Recievables fd: 6million+

Projects/Location: early stage Gold project in the Golden Triangle of Ghana, next to T.PRU`s 280,000 oz per year Edikan Mine

 

The Management:

Douglas R. MacQuarrie, President

P.Geo.BC, B.Sc. Combined Honours Geology & Geophysics

A resident of Vancouver, Mr. MacQuarrie has 36 years’ mineral exploration experience, the last 19 years in West Africa. He has been responsible for the discovery, acquisition and development of many significant gold deposits both in Canada and in Ghana, West Africa. As the former CEO of PMI Gold Corporation (+$200 million market cap) he was responsible for raising over $45 million for Ghana gold exploration and development. Mr. MacQuarrie is a co-founder of Asante Gold.

Philip Gibbs, Chief Financial Officer

B.Compt., MBA, CMA

A resident of Toronto, Mr. Gibbs has extensive experience in the financial management of major international corporations and Canadian listed mining and mineral exploration companies. Mr. Gibbs is also Chief Financial Officer of KILO Goldmines Ltd., and Macusani Yellowcake Inc., operating in the Democratic Republic of Congo and Peru respectively.

Jag Sandhu, Director, Corporate Development

B.Economics

A resident of Vancouver, BC, Mr. Sandhu is a specialist in corporate finance and development services and has 15 years’ experience assisting companies in raising capital for Canadian listed resource exploration and development companies. Mr. Sandhu has held various senior level executive positions in a number of listed companies and is a co-founder of Asante Gold.

Florian Riedl-Riedenstein, Independent Director

A resident of Vienna, Austria, Mr. Riedl-Riedenstein is a former investment banker working in both New York and Austria. He has over 30 years’ corporate experience as a Director and Officer of Canadian listed companies. His specialty is the successful introduction of Canadian resource companies to European investors. He is also a co-founder of Asante Gold.

 

The Fahiakoba Gold project – Ghana

Fahiakoba, a 22.07 sq km prospecting license located on strike with and between Perseus Mining’s 4.32 million ounce (gold reserves & resources) Edikan Mine and AngloGold Ashanti’s 60 million ounce (reserves & resources of 9.52 and 35.41 million ozs, and historical production of ~31 million ozs) Obuasi mine. The latter is the longest producing, highest grade and largest gold resource in West Africa.

Previous drill results from Phase one drilling showed some nice narrow width – high grade results. But should they find Edikan like Gold mineralisation of 20meters of high grade small qtz veinlets with gold Asante should see much greater Interest from both the Investor Communitiy as well as Perseus and possibly other Ghana based Gold producers. With their high annual production of more than 280.000 ounces it will be very important for Perseus to add additional reserves and resources from regional exploration and mergers.

In our view Fahiakoba represents one of the most promising early stage gold exploration projects in Ghana and it`s proximity to Gold producing mines derisks the project significantly.

http://www.asantegold.com/s/fahiakoba.asp

 

The Royalty and it`s underlying asset

1% Net Smelter Royalty with no buyback right and no Cap, it covers the complete highgrade open pit Obotan Gold Project being developed by T.PMV.  PMI Gold has in excess of 150million in cash and there is little doubht in the industry that they will build Ghanas next major Gold mine!

ANNUAL PROJECTED ASANTE GOLD 2014/2015e ROYALTY REVENUE: 3,7-4million $ @ 1700 Gold

 

http://www.pmigoldcorp.com/s/Obotan-Gold-Project.asp

 

BOTTOM LINE:

As outlined above: Such great chances exist sometimes, but they won`t be there forever.

Asante in our view has 3 major upside cathalysts:

a) The Royalty aquisition. The closing of the deal and then cash flow from the development of Obotan  into production by PMI Gold.

b) Exploration success on their Fahiakoba Gold project, which could potentially be a satellite deposit to T.PRU`s Edikan Mine

c) The ability from it`s great Management to do more good deals

We have just recently received our cash settlement from T.ICI`s Takeover and will reinvest the Money and our 50% profits into V.ASE. V.ASE will also be added to our public portfolio with the next update. What makes us even more confident is the fact that Insiders bought the stock all summer long…and are still buying!

http://www.canadianinsider.com/node/7?menu_tickersearch=ASE

—————————————————————–

Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Martin Hoff has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Martin Hoff makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Martin Hoff only and are subject to change without notice. Martin Hoff assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Martin Hoff, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

This entry was posted in Companies Reviewed, Royalty Companies. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *