June 5, 2017 / 10:36 AM / 2 months ago

BRIEF-Asanko Gold Expansion DFS confirms organic growth plan

3 Min Read

June 5 (Reuters) - Asanko Gold Inc-

* Asanko Gold Expansion DFS confirms robust organic growth plan and strong cash generation

* Asanko Gold Inc - ‍expansion dfs is comprised of two growth projects, project 5 million and project 10 million.​

* Asanko Gold Inc - ‍board is reviewing optimal timing for development of esaase and conveyor, as well as project 10 million​

* Asanko Gold Inc - ‍project 5 million is designed on modular basis allowing plant upgrade and development of esaase as discrete packages​

* Asanko Gold - review to bolster liquidity position to over us$100 million by q2 2018 "without overextending balance sheet" or "diluting shareholders"

* Asanko Gold Inc - investment decisions for development of esaase and conveyor will be dependent on company's cash position​

* Asanko Gold Inc - there is "complete flexibility" on timing of development of esaase and conveyor, as well as project 10 million plant expansion

* Asanko Gold Inc - ‍project 5 million is expected to be funded from cash reserves and cash flow from operations​

* Asanko Gold-‍project 5 million comprises 2 modules, upgrade of existing carbon-in-leach processing plant from design of 3 mtpa to 5 mtpa, development of large esaase pit​

* Asanko Gold Inc - ‍plant upgrade to 5mtpa will be funded from cash on hand​

* Asanko Gold Inc - for project 5 million, based on front end engineering design, final capital cost estimates are us$22 million for plant upgrade

* Asanko Gold- for project 5 million, based on "feed", final capital cost estimates us$78 million for conveyor, us$32 million for development of esaase deposit

* Asanko Gold- for project 5 million, based on "feed", total project capital cost of approximately us$150 million

* Asanko Gold Inc - ‍asanko's 2017 production guidance is 230,000 - 240,000 ounces​

* Asanko Gold-if co elects to exercise option to extend first principal repayment of red kite facility,would accumulate additional us$46 million in cash in 2018

* Asanko Gold Inc - capital cost of combined growth projects, project 5 million and project 10 million, of us$350 million Source text for Eikon: Further company coverage:

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