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.
Comments
Latest Multimedia
Latest News
Showroom
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
