Asante Gold has unveiled plans to raise $525m (C$731.37m) through a two-stage financing package to support expansion and operational improvement strategies at its Ghanaian gold mines.
The company noted that the first stage of funding, amounting to $325m, is set to enable the company to embark on significant capital projects.
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These include a pit expansion and the construction of a new sulphide plant at the Bibiani mine, equipment upgrades at Chirano and underground development at both sites.
The initial funding round includes a $100m equity private placement, a refinancing deal of approximately $100m with Kinross Gold, a $75m bond funded by Ghanaian investors and a $50m syndicated gold stream facility.
These funds are expected to enhance the company’s mining operations and contribute to its growth in the region.
The second phase of funding, totalling $200m, will comprise a $150m senior debt facility arranged by FirstRand Bank and a $50m standby equity commitment from an undisclosed strategic investor.
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By GlobalDataThis additional capital will further support Asante Gold’s objective to organically increase its gold production, leveraging the estimated 6.6 million ounces of gold resources across the Bibiani and Chirano mines.
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.
“We look forward to welcoming our new Ghanaian and international financing partners, who recognise the unique opportunity we have to establish Bibiani-Chirano as Africa’s next Tier One gold district, against the backdrop of a historic gold bull market.”
Last month, Asante Gold revealed a deal for equity financing with a strategic investor.
The agreement entails the sale of 90,666,667 common shares at a price of C$1.50 per share, resulting in total gross proceeds of C$136m.
Alongside the placement, Asante negotiated preliminary terms to modify the repayment schedule with Kinross Gold.
