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June 5 (Reuters) - Asanko Gold Inc AKG.TO said it could bolster its liquidity position to over $100 million by the second quarter of 2018, days after short seller Muddy Waters said the Canadian gold miner would run out of cash by next year.
Asanko outlined a plan on Monday for the expansion of its gold mine in Ghana, which includes the large Esaase deposit. company's shares tumbled last week when Muddy Waters released a 43-page document saying production at Asanko's Nkran mine in Ghana and other deposits would not meet the company's expectations because the estimates were based on flawed geology reports. Muddy Waters report predicted that production shortfalls would cause Asanko to run out of cash next year as it struggles to repay $165 million in debt.
Asanko said on Monday it could raise equity of $100 million in the next 12 months by deferring the construction of a 27 km overland conveyor connecting the Esaase deposit to existing processing facilities.
The company expects to generate $51 million in cash for the rest of 2017 and would result in a cash balance of $78 million to $96 million by the end of this year.
Since the Muddy Waters report on May 31, Asanko's shares have fallen 3.2 percent.