Asante Gold Secures $500M for Bibiani Mine expansion
Asante Gold (CSE: ASE) has entered a $500 million gold forward purchase agreement with UAE-based Fujairah Holdings to support its operations at the Bibiani gold mine in Ghana. This development underscores Asante’s commitment to maximizing the potential of its Ghanaian gold assets, positioning the company for significant production growth and profitability.
Increased gold production
An advance deposit of $100 million has been received by Asante’s subsidiary. The funding will accelerate the ramp-up of mining activities and the completion of the sulphide treatment plant at Bibiani. The plant upgrade is expected to boost gold recovery rates from 70% to 92%.
Once fully operational, Bibiani’s annual gold production is anticipated to exceed 250,000 oz, with monthly output exceeding 15,000 oz by mid-year 2024. Asante acquired Bibiani from Resolute Mining in 2021 and Chirano from Kinross Gold in 2022.
The company has pursued multiple financing initiatives to fuel its growth in Ghana including: $100M equity private placement, $100M refinancing with Kinross, $75M bond from Ghanaian investors and $50M syndicated gold stream facility. The $100 million initial deposit from Fujairah Holdings will cover gold deliveries between March 28 and June 28, 2025. Fujairah Holdings is Asante’s second-largest shareholder. Asante Gold’s shares rose 2.7%, bringing its market capitalization to C$566.6 million.
