Asante bags major equity financing deal for gold mining projects
Asante Gold, a Canada-based gold exploration and development company, has announced a major equity financing deal with a strategic investor.
This agreement involves the sale of 90,666,667 common shares at a price of C$1.50 each, raising a total of C$136 million (approximately $100 million). The offering will be conducted in three tranches, with the first tranche of $25 million expected to close on 15 October 2024. The subsequent tranches will raise $35 million and $40 million, closing on 14 November and 5 December 2024, respectively.
Approvals
This deal is contingent on regulatory approvals, including from the Canadian Securities Exchange. The capital raised will support Asante’s operations, specifically the development of its Bibiani and Chirano gold mines, as well as exploration for new acquisitions. Additionally, funds will help refinance existing liabilities.
Alongside this equity placement, Asante has also reached preliminary terms to adjust its repayment schedule with Kinross Gold, related to Asante’s acquisition of Red Back Mining shares, which own a 90% stake in the Chirano Gold Mine. The final details of this amended agreement will be disclosed once finalized.
Asante’s president and CEO, Dave Anthony, emphasized the importance of this financing as part of a broader initiative, including the Ghanaian bond program announced earlier. These efforts aim to recapitalize short-term liabilities and fund further development of the company’s projects.
