Delta, British Columbia, August 22, 2019, Desert Gold Ventures Inc. (“Desert Gold” or the “Company”) (TSX.V:DAU)(FF:QXR2)(OTC:DAUGF) is pleased to announce it has closed its business combination with Ashanti Gold Corp (“Ashanti”). Each shareholder of Ashanti will receive 0.2857 Desert Gold shares for each Ashanti share held. Approximately 21,097,657 Desert Gold Shares were issued to Ashanti shareholders. Ashanti continues as a wholly owned subsidiary of the Company. Ashanti shareholders will receive their Desert Gold shares on a push out basis.
In addition, 1,631,381 Desert Gold shares were issued to outgoing Ashanti management and directors to settle debts owing to them. These shares were issued at a deemed price of $0.18 and are subject to voluntary trading restrictions, with half of the total legended for 6 months and the balance for 12 months.
Desert Gold’s acquisition of Ashanti increases the Company’s land position along and near the Senegal Mali Shear Zone and Main Transcurrent Fault Zone by 28% to 296.9 km2. Both of these regional structures are related to multi-million ounce gold mines and deposits owned by B2Gold, Barrick, Anglogold Ashanti/Iamgold and Teranga. The Ashanti concession hosts five gold zones with drill intercepts of 2.04 g/t Au over 75 metres. Gold mineralization is related to hydrothermal-type breccia zones and typical, structurally-controlled shear and fault zones hosted by both volcanics, sediments and felsic intrusions. Currently Desert Gold is remodelling the two larger zones, Gourbassi East and West, with a plan to test the revised model in late Q4, 2019. Remodelling is supported by a recently completed new ground magnetic survey and lithogeochemical data, which support an alternative mineralization model. Management believes that the likelihood of discovering additional gold mineralization and extensions to known zones is high.
Desert Gold thanks the Ashanti shareholders for their support of this transaction and believes, that this combination, in a rising gold market, with some of the best exploration ground in West Africa, provides a compelling base from which to grow.
This press release contains certain scientific and technical information of Desert Gold. The Company is solely responsible for the contents and accuracy of any scientific and technical information related to it. Don Dudek, P.Geo a director of Desert Gold and a Qualified Person under National Instrument 43-101, has reviewed and approved the scientific and technical information contained in this press release.
ON BEHALF OF THE BOARD
President & Director
+1 (604) 357 4726
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