Asante announces US$525 million financing package
Published by Jane Bentham,
Editorial Assistant
Global Mining Review,
Asante Gold Corporation has provided an update on a planned financing package of US$525 million to fully fund its growth plans and recapitalise its short-term liabilities.
The Financing Package is planned in two stages and is expected to include the previously announced US$100 million equity private placement plus US$425 million of additional financing transactions, including a comprehensive refinancing agreement with Kinross Gold Corporation, issuance of senior debt, Ghanaian bond and gold stream agreements.
“Completion of this comprehensive Financing Package will mark a breakthrough moment in Asante’s history. It will transform our balance sheet and support execution of our growth plan to achieve gold production above 500 000 oz/y by 2028, at significantly lower all-in sustaining costs,” stated Dave Anthony, Asante’s President and CEO, who added, “We look forward to welcoming our new Ghanaian and international financing partners, who recognise the unique opportunity we have to establish Bibiani-Chirano as Africa’s next Tier One gold district, against the backdrop of a historic gold bull market.”
Highlights
- Financing Package of US$525 million to fully fund growth plans and balance sheet needs, including:
- Bibiani: pit expansion, sulphide plant, community resettlement, underground mine development.
- Chirano: mobile equipment, underground development and expansion, plant upgrades.
- Kinross: refinancing to include equity conversion and deferral of amounts owed.
- Settlement of other short-term liabilities.
- Stage 1: US$325 million in financing expected to be completed by the end of 2024, including:
- US$100 million equity private placement, as previously announced.
- US$100 million (approx.) Kinross Refinancing, including increased shareholding in Asante to 9.9%.
- US$75 million local currency, dollar-linked bond funded by strategic Ghanaian institutions.
- US$50 million syndicated gold stream facility.
- Stage 2: US$200 million in financing expected to be completed in early 2025, including:
- US$150 million senior debt facility, to be arranged by FirstRand Bank Limited (acting through its Rand Merchant Bank division (RMB)) as Initial Mandated Lead Arranger and Bookrunner.
- US$50 million standby equity commitment from a strategic investor.
Read the article online at: https://www.globalminingreview.com/finance-business/04112024/asante-announces-us525-million-financing-package/
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