Desert Gold Ventures Inc. (TSXV:DAU) entered into a binding letter of intent to acquire Ashanti Gold Corp. (TSXV:AGZ) for CAD 3.8 million on March 8, 2019. Desert Gold Ventures Inc. entered into definitive agreement to acquire Ashanti Gold Corp. on March 29, 2019. Under the terms of the letter of intent, all of the issued and outstanding shares of Ashanti Gold will be exchanged on the basis of 0.2857 common shares of Desert Gold Ventures, for each share of Ashanti Gold. Desert Gold Ventures will issue approximately 21.1 million shares for the deal. Subject to TSX Venture Exchange and any other required regulatory authority approval, outstanding options of Ashanti Gold and warrants will be exercisable in accordance with their terms into shares of Desert Gold Ventures at the exchange ratio until their expiry date. Post transaction, shareholders of Ashanti Gold will own 31% stake in the combined entity. Upon completion, Ashanti Gold will be delisted from the TSX Venture Exchange and will become a wholly owned subsidiary of Desert Gold. In the event that the transaction is not completed as a result of a superior proposal or in certain specified circumstances, Ashanti Gold will pay Desert Gold Ventures, a termination fee in the amount of CAD 0.25 million. As a part of the transaction, Ashanti Gold's Chief Executive Officer, Tim McCutcheon will join the Board of Desert Gold.

The transaction is subject to a number of conditions, including, but not limited to, Ashanti Gold and Desert Gold Ventures entering into one or more binding definitive agreements, receipt of all regulatory approvals including stock exchange approvals, approval of the transaction by the requisite majority of shareholders of Ashanti Gold, agreement on customary non-solicitation covenants, board support and other standard provisions. The closing of the transaction is also conditional on Ashanti Gold being granted a renewal of the Kossanto East exploration permit in Western Mali which is due to expire on May 7, 2019. As of April 1, 2019, the Board of Directors of Ashanti Gold has unanimously determined that the transaction is in the best interests of the shareholders of Ashanti Gold and is fair, from a financial point of view, and will recommend that shareholders of Ashanti Gold vote in favor of the transaction. As of May 13, 2019, the shareholders of Ashanti Gold Corp. approved the transaction at its special shareholders' meeting. The transaction has a long-stop date of September 30, 2019. The transaction is expected to be completed the end of May 2019.

Rick Skeith of Dentons Canada acted as legal advisor for Desert Gold Ventures Inc. Jeff Lightfoot of Owen Bird Law Corp. acted as legal advisor to Ashanti Gold. Computershare Trust Company Of Canada acted as information agent to Ashanti Gold.