Asante Gold seals $500m financing deals, completes Kinross debt restructuring
Vancouver-based Asante Gold said this week that it had signed definitive agreements for a $500-million financing package and completed the restructuring of debt owed to Toronto-listed Kinross Gold, securing funds to advance its Bibiani and Chirano gold mines in Ghana.
The package includes a $150-million senior debt facility, a $125-million mezzanine facility, a $50-million gold stream with Appian Capital Advisory, and C$237-million ($173-million) from a brokered private placement completed in July. Asante also expects to raise $10-million in a non-brokered private placement.
The first stage of the financing, expected to close by Friday, will deliver about $350-million, including the release of proceeds from the private placement, full drawdown of the mezzanine facility, the gold stream, and an initial $5-million from the senior debt facility. The second stage, expected by the end of August, will release the remaining $145-million of senior debt.
Asante said it would use the proceeds for mine development, the cash payment to Kinross, repayment of short-term liabilities and working capital.
In connection with the Kinross agreement, Asante has paid $53-million in cash, issued 36.9-million shares at C$1.45 each, and delivered a $80-million secured convertible debenture maturing in seven years. Kinross has released its security interest in entities owning the Chirano mine. In August 2022, Asante bought the Chirano mine from Kinross.
On Tuesday, Asante confirmed that escrow conditions for the C$237-million offering had been met, releasing net proceeds and converting 163.3-million subscription receipts into common shares.
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