Asante Gold Corporation has announced that it has completed the first US$100 million tranche of a US$140 million financing package from strategic financial institutions in Ghana.
The agreement took effect effective Friday, July 15, 2022.
The initial drawdown of US$100 million will be used to cover local operating costs and the Company’s near-term broader funding and strategic objectives.
Repayment terms are to be 25% of the principal and interest in four equal installments of US$26.88 million, with the final payment due July 12, 2023. Settlement will be in US funds by delivery of gold at the financial institutions’ designated gold refinery in Switzerland and sold at the then Bloomberg BGN XAUUSD spot market price less 7%. The annual interest rate of this gold forward facility is 7.53%.
The Company assumes no derivative risks from the transaction as the loan principal is denominated in US funds and repayments from gold deliveries will be made in US funds, thereby providing a natural currency hedge.
Through this facility Asante obtains an immediate and non-dilutive financing, repayable from gold production. The Bibiani Mine has completed its commissioning, with the first gold pour announced on July 7, 2022.
The Company thanks the Financing Institutions for their confidence and financial support as Asante continues to develop its production profile in Ghana.
The Company is also in advanced discussions on additional senior secured debt facilities to provide for ongoing sustaining capital.
About Asante Gold Corporation
Asante is a gold exploration, development and operating company with a high-quality portfolio of projects in Ghana. Asante is currently operating the Bibiani Gold Mine with forecast production of 175,000 oz of gold over the next 12 months, is completing the acquisition of the Chirano Gold Mine from Kinross Gold Corporation (the Chirano Acquisition), and is developing to production its Kubi Gold mine, all 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.
