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Business & Finance

Asante Gold announces $27 million financing and termination of previous brokered private placement

By : cd on 29 Mar 2023, 01:01     |     Source: christian ahorgah

Gold Star

Asante Gold Corporation , today Tuesday announced that is has entered into an agreement with a major institutional investor, pursuant to which Asante will sell, on a non-brokered private placement basis, 18,232,000 units of the Company at a purchase price of C$1.50 per Unit for aggregate gross proceeds of C$27,348,000.

According to the Mining Company, each unit will be comprised of one common share in the capital of the Company (a “Common Share”) and one common share purchase warrant of the Company. Each Warrant will be exercisable to acquire one Common Share for a price of C$1.75 per Common Share until the date that is twelve (12) months following the issuance thereof.

Closing of the Offering is expected to occur on or about April 3, 2023, and is subject to a number of closing conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the Canadian Securities Exchange. The securities to be issued under the Offering will be subject to a four month plus one day hold period from the date of issue in accordance with applicable securities laws. No commissions or finder’s fees will be paid by the Company in connection with the Offering.

The Company is currently at an advanced stage of securing a senior debt facility, to support capital investments and development of its assets.

The Company intends to use the proceeds from the Offering for exploration and development of the Company’s mineral properties and for general corporate working capital purposes.

Termination of Previously Announced Brokered Private Placement

The Company also announced that it has terminated the brokered private placement financing previously announced on January 23, 2023, due to unfavorable market conditions.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Asante Gold Corporation
Asante is a gold exploration, development and operating company with a high-quality portfolio of projects and mines in Ghana. Asante is currently operating the Bibiani and Chirano Gold Mines with combined forecast production of approximately 400,000 ounces of gold for 2023. The Company continues with detailed technical studies at its Kubi Gold Project for early production.

All mines and exploration projects are located on the prolific Bibiani and Ashanti Gold Belts. Asante has an experienced and skilled team of mine finders, builders and operators, with extensive experience in Ghana. The Company is listed on the Canadian Securities Exchange, the Ghana Stock Exchange and the Frankfurt Stock Exchange. Asante is also exploring its Keyhole, Fahiakoba and Betenase projects for new discoveries, all adjoining or along strike of major gold mines near the centre of Ghana’s Golden Triangle.