Asante Gold Corporation has struck a pivotal deal, securing a $100 million equity financing agreement with a strategic investor. This non-brokered private placement involves the sale of over 90 million common shares at CAD 1.50 per share, set to close in three stages. The first tranche, amounting to $25 million, is expected to finalize on October 15, 2024, followed by $35 million in November, and the remaining $40 million in December 2024.
The funds are earmarked for various growth initiatives, particularly at the Bibiani and Chirano mines, which are central to Asante’s operations in Ghana. The capital will also support acquisition opportunities and address short-term financial obligations, signaling the company’s broader commitment to bolstering its mining assets.
Asante’s CEO, Dave Anthony, emphasized that this financing move is a part of the company’s larger financial strategy, which also includes a Ghanaian bond program announced recently. Both measures aim to provide Asante with the financial muscle to not only sustain but expand its footprint in the gold-rich Ashanti and Bibiani Gold Belts.
Additionally, Asante has reached a non-binding agreement with Kinross Gold Corporation to amend the repayment schedule concerning its acquisition of the Chirano Gold Mine, further fortifying its financial position as it refines its mining operations.
By securing this deal, Asante Gold underscores its ambitious plans to continue being a major player in Ghana’s gold mining sector, with a clear vision for growth, stability, and continued exploration within the West African region.
