| Asanko Gold Inc.- AKG.t flagship project is the Asanko Gold Mine located in Ghana, West Africa.|
The Project has a gold resource base of 7.9Moz (M&I) and reserves of 5.2Moz (P&P).
The Globe and Mail reports in its Thursday edition that short seller Carson Block of Muddy Waters LLC says that nothing shy of a massive rally in gold will save Asanko Gold. A Bloomberg dispatch to The Globe quotes Mr. Block as saying, "At this point Asanko has backed itself into a corner and short of gold ripping to $1,700 an ounce, we don't see how this company gets out of it." Asanko shares fell 33 cents to $2.19 before trading was halted Wednesday. Muddy Waters said it was shorting the stock, believing it "highly likely to end up a zero." Asanko refuted the report and reaffirmed its production guidance for 2017. In a research note Wednesday, Muddy Waters said the company made investments in Ghana based on flawed geological data and will likely exhaust liquidity in 2018. "The best-case medium-term scenario seems to be an extremely dilutive equity raise, possibly approximating half of AKG's market cap," the report said. BMO countered in a note that most of the issues identified by Muddy Waters were previously known. Said Mr. Block, "The pattern of management being dismissive of the report, in this case Bay Street circling the wagons to defend the company, that said to us there are issues here likely."