Asante Gold (CSE:ASE) has received $470 million in commitments from investors, which will fund the company’s growth plans as well as recapitalising short-term liabilities.
The company has also been offered a conditional acceptance to be listed on the TSX Venture Exchange.
Subject to meeting certain conditions, Asante expects the completion of the listing to occur in August 2025.
Orchestrated by Appian Capital Advisory, the company will meanwhile receive a $175 million financing package from private funds, as well as a $170 million credit and underwrite commitment from FirstRand Bank, falling under the Rand Merchant Bank (RMB) division as part of the capital raise.
This amount comprises a received non-dilutive financing package for $150 million with a senior debt facility with a revolving credit facility of $30 million across a five-year plan.
With a secured overnight financing rate (SOFR) and interest rate of 6.5%, the company will be expected to meet operational milestones, while RMB will offer a three-year term with a rate of SOFR and 4.5%.
A subordinated debt facility will offer up to $125 million from Appian and another financial institution, at a rate of SOFR and 9.75%, maturing at seven years.
Appian will offer another $50 million from gold stream financing, where the company is strapped for 24 months, to sell 1.5% of payable gold from its Bibiana Mine and Chirano Mine for 20% of the market price. This will increase to 2.25% and then reduced to 0.30% following delivery thresholds are met.
Subject to negotiations and settlement of outstanding liabilities with Kinross Gold, the package is conditional to raise around $130 million of equity from the company, of which $85 million has already been received.
Asante expects this financing package, along with related transactions, to be completed by July 2025.
CEO Dave Anthony says this package allows the company to understand the full potential of its assets.
“This will clear the path to achieve our goal of gold production of more than 500,000 ounces per year by 2028 at significantly lower all-in sustaining costs, with over $2 billion of free cash flow generation expected through 2029 as described in our recent five-year outlook,” Anthony says.
“Our extensive land package at Bibiani and Chirano encompasses 80 kilometres of strike length on some of Ghana’s most prospective ground, with significant exploration upside remaining.”
Asante Gold is a gold producer, focused on the exploration and development of its portfolio of projects in Ghana, Africa.
Write to Maddison Elliott at Mining.com.au
Images: Asante Gold
