Asante Gold to upgrade gold mines in Ghana
Asante Gold has announced plans to upgrade gold mines in Ghana. A sum of $525m has been raised to kick start to the process.
The firm raised the funds through a comprehensive two-stage financing package aimed at advancing its expansion and operational improvement initiatives at its Bibiani and Chirano gold mines in Ghana. This financing is designed to support projects such as a pit expansion, the construction of a new sulphide processing plant at Bibiani, equipment upgrades at Chirano, and further underground development at both sites.
Funding stages
The first funding stage, totaling $325 million, comprises multiple components: A $100 million equity private placement, a $100 million refinancing arrangement with Kinross Gold, a $75 million bond sourced from Ghanaian investors, a $50 million syndicated gold stream facility.
These initial funds are directed towards essential capital projects and infrastructure improvements to enhance Asante’s mining capabilities and drive growth. In the second phase, Asante plans to secure an additional $200 million, split between: a $150 million senior debt facility arranged by FirstRand Bank, a $50 million standby equity commitment from a strategic investor.
This added capital will further propel Asante’s production goals, supporting its aim to reach an annual gold output of over 500,000 ounces by 2028, while aiming for lower all-in sustaining costs. Dave Anthony, Asante Gold’s president and CEO, emphasized that this financing package represents a transformative step for the company, allowing it to capitalize on the opportunity to position Bibiani-Chirano as a significant gold-producing district in Africa amid a strong gold market.
Asante also recently announced a separate equity financing arrangement with a strategic investor, involving the sale of 90,666,667 shares at C$1.50 per share, expected to raise C$136 million in gross proceeds. Additionally, Asante is in preliminary discussions with Kinross Gold to adjust the repayment terms, further enhancing its financial flexibility for growth.
