Gold miner Asante Gold has unveiled a $525-million financing package aimed at supporting Ghana’s growth initiatives and addressing its short-term liabilities.
The two-stage financing plan includes the previously disclosed $100-million equity private placement, along with an additional $425 million from various sources. This includes a refinancing deal with Kinross Gold, the issuance of senior debt, as well as Ghanaian bond and gold streaming agreements.
“Finalizing this comprehensive financing package will be a milestone for Asante, significantly strengthening our balance sheet and enabling us to execute our growth strategy to reach over 500,000 ounces of gold production annually by 2028, with notably lower all-in sustaining costs,” said president and CEO Dave Anthony.
Stage 1 of the package involves $323 million in financing, comprising the previously announced private placement, a $100-million Kinross refinancing, $75 million in local currency, and a $50-million syndicated gold streaming facility.
The gold streaming agreement will see Asante selling 1.25% of payable gold from its Bibiani and Chirano mines at 20% of the prevailing market price. The agreement includes options for a 50% buyback and a rate reduction from 1.25% to 0.60% (and potentially down to 0.30% with the buyback) once certain thresholds are met.
Stage 2 involves a $200-million financing, targeted for completion in early 2025, consisting of a $150-million senior debt facility managed by FirstRand Bank and a $50-million standby equity commitment from a strategic investor.
