Ashanti signs letter of intent on C$3.8m sale to Desert GoldStaff Writer | March 12, 2019
Ashanti Gold Corp. and Desert Gold Ventures Inc. announced they have entered into a binding letter of intent contemplating the acquisition by Desert Gold of all of the outstanding common shares of Ashanti.
Acquisition The proposed transaction will allow Ashanti shareholders to benefit
Under the terms of the LOI, all of the issued and outstanding Ashanti shares will be exchanged on the basis of 0.2857 Desert Gold common shares for each Ashanti share.
The exchange ratio implies consideration of approximately CAD $0.0514 per Ashanti share, based on the closing price of the Desert Gold shares on the Toronto Venture Stock Exchange ("TSXV") on March 8, 2019.
This represents a premium of 28.5% based on the closing price of Ashanti shares on the TSXV on March 8, 2019.
The proposed transaction value is approximately CAD $3.8 million on a fully diluted in-the-money basis, and Ashanti shareholders will own 31% of the combined entity.
The parties have until April 15, 2019 to enter into a definitive agreement and have set a long-stop date of September 30, 2019 to close the Proposed Transaction. ■