Asante Gold, a Canada-based company focused on gold exploration and development, has announced an equity financing deal with a strategic investor.
The agreement involves the sale of 90,666,667 common shares at C$1.50 each, amounting to aggregate gross proceeds of C$136m ($100m).
This offering will be executed in three tranches, with the initial $25m tranche expected to close on 15 October 2024.
The subsequent tranches will close on 14 November 2024 and 5 December 2024, raising $35m and $40m, respectively.
These transactions are contingent upon regulatory approvals including that of the Canadian Securities Exchange.
Asante noted that the capital raised will be allocated to the advancement of its Bibiani and Chirano mines.
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By GlobalDataAdditionally, the funds will facilitate the exploration of new acquisition opportunities and the refinancing of existing liabilities.
The shares issued under this placement will be subject to a four-month hold period from the date of issue.
In parallel with the placement, Asante has reached preliminary terms to amend the repayment schedule with Kinross Gold.
This amendment pertains to the outstanding payments due for Asante’s acquisition of shares in Red Back Mining, which indirectly owns a 90% stake in the Chirano Gold Mine.
Both Kinross and Asante are working towards finalising the documentation for this amended agreement, and Asante will disclose full details once the process is complete.
Asante president and CEO Dave Anthony said: “This offering is a significant component of the comprehensive financing initiative that Asante has advanced. Another component, the Ghanaian bond programme, was announced on 19 September 2024.
“This initiative is also advancing in good order. We look forward to providing additional updates on our financing initiatives to fund the company’s development and recapitalise our short-term liabilities.”
