Asante Gold has announced a $525m funding package intended to fully support the company’s growth plans at the Bibiani and Chirano gold mines in Ghana and to recapitalise its short-term liabilities.
The financing, structured in two phases, is expected to include an earlier $100m private equity placement and an additional $425m through a Ghanaian bond offering, a gold streaming arrangement, as well as a refinancing agreement with Kinross Gold.
Under the terms of the refinancing agreement with Kinross Gold for its acquisition of a majority stake in the Chirano mine, Asante Gold will make a $65m payment towards deferred acquisition costs.
At the Bibiani mine, the funding will advance the sulphide plant, pit expansion, and underground mine development.
For the Chirano mine, Asante Gold plans to allocate funds towards mobile equipment upgrades, underground expansion, and the plant’s modernisation.
Asante Gold president and CEO Dave Anthony said: “Completion of this comprehensive Financing Package will mark a breakthrough moment in Asante’s history.
“It will transform our balance sheet and support execution of our growth plan to achieve gold production above 500,000 ounces per year by 2028, at significantly lower all-in sustaining costs.”
In the first stage, Asante Gold aims to secure $325m by the end of 2024. This includes a $100m equity private placement, and around $100m refinancing from Kinross Gold, which will also raise its stake in Asante Gold to 9.9%.
Stage 1 will also involve a $75m Ghanaian local currency bond and a $50m syndicated gold streaming facility. The company expects this initial tranche to advance the Bibiani gold project.
The second phase of the financing, totalling $200m is expected to close in early 2025. This portion includes a $150m senior debt facility arranged by FirstRand Bank and a $50m standby equity commitment from a strategic investor.
In September this year, Asante Gold delivered the first mineralised material from the Russel starter pit to the process plant at the Bibiani gold mine, following the receipt of all necessary permits from Ghanaian authorities.
