Asante plans $525m package for Ghana growth plan
Gold miner Asante Gold has announced plans for a $525-million financing package to fund its growth plans and to recapitalise its short-term liabilities.
The financing package is planned in two stages and is expected to include the previously announced $100-million equity private placement plus $425-million of additional financing transactions, including a comprehensive refinancing agreement with Kinross Gold, issuance of senior debt, and 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 president and CEO Dave Anthony.
Stage 1 entails a financing package of $323-million, including the previously announced equity private placement, $100-million Kinross refinancing, $75-million local currency and a $50-million syndicated gold stream facility.
Under gold stream, the company will sell 1.25% of payable gold from the Bibiani and Chirano mines at 20% of the prevailing market price. The stream is anticipated to contain provisions for a 50% buyback, and a reduction in the stream rate from 1.25% to 0.60% (reducing to 0.30% if the buyback is exercised) after certain delivery thresholds are met.
Stage 2 entails $200-million in financing and is expected to be completed in early 2025, including $150-million senior debt facility to be arranged by FirstRand Bank and a $50-million standby equity commitment from a strategic investor.
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