Asante Gold Secures Major Financing Through Gold Forward Agreement

Asante Gold's Strategic Gold Forward Purchase Agreement

Asante Gold Corporation (CSE:ASE | GSE:ASG | FRANKFURT:1A9 | U.S.OTC:ASGOF) has made a remarkable stride in its operations by entering into a forward sale agreement worth US$500 million. This agreement is inked between Asante's subsidiary, Asante Gold Bibiani Ltd., which oversees the Bibiani mine, and Fujairah Holdings LLC. The primary goal is to provide US$100 million in financing on a revolving basis over the next couple of years.

Accelerating Growth Initiatives at Bibiani

Dave Anthony, the President and CEO of Asante Gold Corporation, expressed enthusiasm about the partnership with Fujairah. He highlighted that the Gold Forward Agreement would allow Asante to accelerate its mining activities significantly, focusing on completing the sulphide treatment plant. The plans are to ramp up gold production to exceed 15,000 ounces per month by mid-year, aligning with the company's funding initiatives.

Initial Deposit and Future Deliveries

Asante received an advance deposit of US$100 million as part of the agreement, which will set the stage for a series of refined gold deliveries. The agreement stipulates a three-month grace period where Asante is expected to begin delivering gold to Fujairah starting March 28, leading up to June 28, with additional deposits of US$400 million planned over the subsequent 22 months.

Use of Proceeds from the Agreement

The funds from the Initial Deposit will primarily support growth initiatives at Asante’s operations, particularly for the Bibiani mine. The enhancement in mining operations and the completion of the sulphide treatment plant are critical focuses, aiming to boost production capabilities to meet increasing demand.

Securing Obligations with Fujairah

The obligations under the Gold Forward Agreement are reinforced with a parent guarantee from Asante and a debenture against Asante Bibiani’s assets. Fujairah has consented to take a subordinate position compared to senior lenders and bondholders as part of an intercreditor agreement.

Insights into Existing Financing Initiatives

Asante Gold Corporation is also evaluating modifications or potentially canceling the third tranche of a US$100 million non-brokered private placement, which currently hasn’t closed. The decision will be disclosed once finalized.

About Asante Gold Corporation

Asante Gold is a robust player in gold exploration and mining, boasting a quality portfolio across Ghana. It operates the Bibiani and Chirano Gold Mines while continuing technical evaluations at the Kubi Gold Project. Located on the prolific Bibiani and Ashanti Gold Belts, these projects are critical to Asante's long-term growth prospects.

Overview of the Bibiani Gold Mine

The Bibiani mine has a rich history with over 4.5 million ounces of gold produced in the past. Fully permitted with advanced mining infrastructure, it has been operational since the first gold pour announced in July 2022, with commercial production commencing later that year.

Chirano Gold Mine Operations

The Chirano Gold Mine, situated south of Bibiani, is another integral asset to Asante’s portfolio. First explored in 1996, this open pit and underground mine has a rich history of production since its inception and contributes significantly to the gold output of Asante.

Frequently Asked Questions

What is the purpose of the Gold Forward Agreement?

The Gold Forward Agreement allows Asante to secure financing to enhance their mining operations and facilitate growth, specifically at the Bibiani mine.

How much gold is Asante expected to deliver under this agreement?

Asante is scheduled to deliver US$100 million of refined gold to Fujairah, with additional deposits leading up to an aggregate of US$500 million.

What will the financing be used for?

The financing will primarily support growth initiatives at Bibiani and work towards completing a sulphide treatment plant.

Who are Asante's strategic partners?

Fujairah Holdings LLC is a key strategic partner as evidenced by this recent gold forward agreement.

What is Asante’s operating focus?

Asante focuses on gold exploration and development in Ghana, managing mines like Bibiani and Chirano while pursuing new discoveries.

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