Vancouver, British Columbia// – Asante Gold Corporation (CSE: ASE | GSE: ASG | FRANKFURT:1A9 | U.S.OTC: ASGOF) (Asante or the Company) announced that it has entered into an equity financing agreement with a strategic investor, pursuant to which Asante will sell, on a non-brokered private placement basis, 90,666,667 common shares at a purchase price of C$1.50 for aggregate gross proceeds of C$136 million (US$100 million) (the Offering).
Closing of the Offering will occur in three tranches, with the first tranche in the amount of US$25 million scheduled to close on October 15, 2024, the second tranche in the amount of US$35 million scheduled to close on November 14, 2024 and the third tranche in the amount of US$40 million scheduled to close December 5, 2024, subject to receipt of all necessary regulatory approvals, including the approval of the Canadian Securities Exchange.
The use of proceeds from the Offering may include the funding of growth and development initiatives at the Bibiani and Chirano mines, as well as acquisition opportunities and refinancing of liabilities.
“This Offering is a significant component of the comprehensive financing initiative that Asante has advanced. Another component, the Ghanaian bond program was announced on September 19, 2024. This initiative is also advancing in good order,” stated Dave Anthony, Asante’s President and CEO, who added, “We look forward to providing additional updates on our financing initiatives to fund the Company’s development and recapitalize our short-term liabilities.”
The common shares to be issued under the Offering will be subject to a four-month hold period from the date of issue in accordance with applicable Canadian securities laws.
Asante also announces that it has agreed to non-binding terms on an amended repayment schedule with Kinross Gold Corporation (Kinross) in relation to the remaining consideration amounts due to Kinross in connection with the Company’s purchase of all the issued and outstanding shares of Red Back Mining Pty Ltd. (now renamed Asante Chirano Australia Pty Ltd.) which indirectly holds a 90% interest in the Chirano Gold Mine.
Kinross and Asante expect to enter into a further amendment to its original share purchase agreement. Asante will issue full details on the amended repayment schedule when documentation is finalized. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Instructively, Asante is a gold exploration, development, and operating company with a high-quality portfolio of projects and mines in Ghana. Asante is currently operating the Bibiani and Chirano Gold Mines and continues with detailed technical studies at its Kubi Gold Project.
All mines and exploration projects are located on the prolific Bibiani and Ashanti Gold Belts. Asante has an experienced and skilled team of mine finders, builders and operators, with extensive experience in Ghana. The Company is listed on the Canadian Securities Exchange and the Ghana Stock Exchange.
Asante is also exploring its Keyhole, Fahiakoba and Betenase projects for new discoveries, all adjoining or along strike of major gold mines near the centre of Ghana’s Golden Triangle.
