Asante Gold Secures $470 Million Financing to Propel Growth
Asante Gold Secures $470 Million to Drive Future Opportunities
(All amounts expressed in U.S. dollars unless otherwise noted)
Asante Gold Corporation (CSE: ASE | GSE: ASG | FRANKFURT:1A9 | U.S.OTC: ASGOF) is excited to share that it has successfully secured commitments totaling $470 million in credit and equity financing. This funding represents a vital step towards fulfilling the Company's ambitious growth strategy and addressing its immediate financial obligations.
The funding package includes $175 million from private funds managed by Appian Capital Advisory LLP and $170 million in credit commitments from FirstRand Bank Limited, through its Rand Merchant Bank division. Furthermore, Asante has received conditional approval for its common shares to be listed on the TSX Venture Exchange, a move anticipated to enhance investor visibility and liquidity.
These commitments form the backbone of a non-dilutive financing structure that encompasses a senior debt facility valued at $150 million, a subordinated debt facility up to $125 million, and a $50 million gold stream financing. Collectively, these resources are aimed at not just bolstering the Company's balance sheet but also facilitating its future operational expansion.
Completion of the financing package will hinge on finalizing definitive agreements, meeting standard terms, and effectively liaising with Kinross Gold Corporation to manage existing financial responsibilities. Additionally, the Company intends to raise about $130 million in equity, with commitments of $85 million already secured. It is predicted that by the end of July, this financing will be fully operational.
Key Leaders Elaborate on Financial Vision
Dave Anthony, President and CEO, expressed his enthusiasm: "With this financing package, we are on the cusp of unlocking the true potential of our assets and setting the stage for a robust future. Notably, we are aiming for gold production exceeding 500,000 ounces annually by 2028, alongside generating upwards of $2 billion in free cash flow through 2029 as outlined in our recent five-year forecast. Our substantial land holdings at Bibiani and Chirano cover 80 kilometers of highly prospective geological formations, leaving significant room for exploration opportunities."
In further comments, David Wiens, CFO, highlighted the strategic collaboration with Appian and RMB: "We appreciate the support from these leading mining-centric financial institutions, and I want to acknowledge our dedicated teams for their unwavering efforts to propel this project forward. Our goal of achieving a fully funded and well-capitalized status by July is well within reach, and the upcoming TSX-V listing will augment our exposure to a more extensive investor base."
Highlights of the Financing Package
Asante Gold’s financing deal provides critical support for various operational needs:
- $470 million in committed financing lays the foundation for future growth and recapitalization.
- Details of the financing from Appian include:
- $40 million towards syndication of the Senior Debt Facility managed by RMB.
- $75 million allocated to Subordinated Debt Facility.
- $50 million Gold Stream financing with full buyback rights.
- $10 million equity subscription.
- RMB's $170 million credit initiative includes:
- $110 million directed towards managing the Senior Debt Facility.
- $50 million hedging lines focused on gold price protection.
- $10 million environmental guarantee.
- The conditional acceptance for TSX-V listing aims for completion by August.
- Transformational balance sheet footing enables the elimination of overdue obligations.
Utilizing Proceeds for Enhanced Operations
The Company outlines strategic use of funds as per its five-year operational outlook:
- Bibiani project will focus on pit expansion, the completion of the sulphide treatment plant, community resettlement, and the development of underground mines.
- Chirano aims to improve through mobile equipment upgrades, underground development, and plant enhancements.
Asante anticipates the full closing of financial transactions by the end of July, dynamically steering towards enhanced operational capability and financial stability.
About Asante Gold Corporation
Asante is committed to gold exploration and development, currently overseeing operations at two major gold mines in Ghana, namely Bibiani and Chirano. Asante strategically integrates finance and technical expertise to harness opportunities within the rich geological belts of Ghana. Alongside ongoing development, the Company is actively exploring additional projects in close proximity to existing operations, continually searching for new gold discoveries.
Frequently Asked Questions
What is the financial commitment announced by Asante Gold?
Asante Gold has announced a total of $470 million in credit and equity commitments, primarily aimed at funding growth initiatives and recapitalizing short-term liabilities.
Who are the key partners involved in this financing?
The financing includes commitments from Appian Capital Advisory LLP and FirstRand Bank Limited's Rand Merchant Bank division, showcasing a strategic collaboration with leading institutions in the mining sector.
What are Asante’s future production goals?
The Company aims to increase gold production to over 500,000 ounces annually by 2028 while targeting significant free cash flow generation exceeding $2 billion through 2029.
When is the expected TSX-V listing?
The conditional acceptance for the listing of the common shares on the TSX Venture Exchange anticipates completion around August 2025.
How will the funds be utilized for operational enhancements?
Funds will primarily focus on pit expansions, plant upgrades, community initiatives, and the development of underground mines across Asante's various projects.
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