May 31, 2017 / 3:39 PM / 5 months ago

CORRECTED-BRIEF-Muddy Waters says is short Asanko Gold; cites concerns on Ghana operations

(Corrects source text link and updates headline)

May 31 (Reuters) - Muddy Waters:

* Muddy Waters shorts Asanko Gold Inc‍​

* Muddy Waters says “on the back of flawed geology, AKG made investments in Nkran, its satellite pits, and Esaase that we believe will never be recovered”

* Muddy Waters says it estimates AKG needs to spend $75 – $115 million soon to keep mining Nkran, or the mine will “pinch out”

* Muddy Waters says spending the money on mining Nkran likely means AKG will run out of liquidity in 2018

* Muddy Waters says not spending the money on mining Nkran leaves AKG without the cash flow to develop its largest deposit, Esaase

* Muddy Waters says AKG’s “satellite deposits” are unlikely to yield significant cash flow, due to likely flawed geology

* Muddy Waters says there are indicia that some of AKG's resources models have been "smeared", which would cause estimates of their ore contents to be inflated For a related story, click Source text: bit.ly/2rEQDw5 Further company coverage:

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