CANADA’S Asante Gold Corp. said on Wednesday it had raised US$100m through the sale of shares to a strategic investor.
About 90.7 million shares were sold at C$1.50/share for gross proceeds of C$136m. Shares in Asante are currently listed at C$1.52/share.
Dave Anthony, president and CEO of Asante said in a statement the proceeds from the equity issue would be used to fund growth and development at its Bibiani and Chirano gold mines in Ghana. Funds would also be put towards “acquisition opportunities” as well as refinancing of liabilities.
“We look forward to providing additional updates on our financing initiatives to fund the company’s development and recapitalise our short-term liabilities,” said Anthony.
Closing of the share offer will be in three tranches starting with the October 15 close of $25m followed by subsequent $35m and $40m tranches which will close on November 14 and December 5 respectively.
Asante also announced today it had agreed to non-bunding terms on an amended repayment schedule with Kinross Gold Corp. for the balance on the $225m acquisition of Kinross’s 90% stake in Chirano mine in 2022.
“Kinross and Asante expect to enter into a further amendment to its original share purchase agreement,” the company said. “Asante will issue full details on the amended repayment schedule when documentation is finalised,” it added.
Asante bought Bibiani from Resolute Mining in 2021 for $90m.
