Asante Gold Corporation has announced a $525 million financing package to fully fund its growth plans and address short-term liabilities.

The financing will occur in two stages and includes a previously announced $100 million equity private placement and an additional $425 million in various financing transactions.

These include a comprehensive refinancing agreement (Kinross Refinancing) with Kinross Gold Corporation, senior debt issuance, Ghanaian bond issuance, and gold stream agreements.

Dave Anthony, Asante's President and CEO, stated, “Completion of this comprehensive financing package will mark a breakthrough moment in Asante’s history. It will transform our balance sheet and support our growth plan to achieve annual gold production above 500,000 ounces by 2028, with significantly lower all-in-sustaining costs. We look forward to welcoming our new Ghanaian and international financing partners, who recognize the unique opportunity to establish Bibiani-Chirano as Africa’s next Tier One gold district amid a historic gold bull market.”

Highlights of the Financing Package

$525 million to fully fund growth plans and balance sheet needs, including: Bibiani: pit expansion, sulphide plant, community resettlement, and underground mine development

Chirano: mobile equipment, underground development and expansion, and plant upgrades

Kinross Refinancing: equity conversion and deferred payments

Settlement of short-term liabilities

Stage 1: $325 million Financing to Complete by End of 2024

$100 million equity private placement (previously announced) $100 million Kinross Refinancing, increasing Kinross’s shareholding in Asante to 9.9% $75 million local currency, dollar-linked bond funded by strategic Ghanaian institutions $50 million syndicated gold stream facility

Stage 2: $200 million financing to be completed in early 2025

$150 million senior debt facility, arranged by FirstRand Bank Limited (Rand Merchant Bank division) as the initial mandated lead arranger and book runner $50 million standby equity commitment from a strategic investor

Endeavour Financial is acting as the Company’s financial advisor in connection with the financing package. Completion of these transactions is subject to negotiation and execution of definitive agreements, due diligence by certain counterparties, and requisite stock exchange approvals.

Stage 1 Financing: $325 million Asante aims to close the Stage 1 financing by the end of 2024, funding key projects at its operating mines.

This financing is anticipated to progress the sulphide treatment plant (Bibiani), open pit stripping, community resettlement (Bibiani), underground development (Bibiani and Chirano), mobile equipment upgrade and mine development (Chirano), and resource expansion (Bibiani and Chirano). Additionally, it will address obligations including a cash payment to Kinross and funding for Bibiani’s mining contractor to ramp up equipment for pit expansion.

Equity Private Placement The company recently entered a $100 million equity private placement agreement, selling 90,666,667 common shares at C$1.50 per share. The first tranche of $25 million closed on October 29, 2024, with the second tranche of $35 million scheduled to close on November 14, 2024, and the third tranche of $40 million scheduled for December 5, 2024.

Kinross Refinancing Under the terms of the Kinross Refinancing, Asante will make a $65 million cash payment toward deferred acquisition consideration for the Chirano Mine and replace a letter of credit for reclamation obligations.

Upon completion, Kinross will (i) convert a portion of remaining amounts into equity (increasing its shareholding to 9.9%); (ii) convert remaining amounts into a convertible debenture with a six-month maturity extension after the Senior Debt Facility matures and a 3.0% interest rate; and (iii) relinquish its security interest in the entities owning the Chirano Mine.

Ghanaian Bond The company has launched a $75 million bond offering in Ghana, targeting Ghanaian pension funds and high-net-worth individuals. The six-year bond will pay interest quarterly in cash, with principal amortization in the final year. The bond is denominated in Ghanaian cedis and indexed to the US dollar exchange rate after closing.

Gold Stream The company plans a $50 million syndicated gold stream, with a committed investment of $25 million. This agreement allows Asante to sell 1.25% of payable gold from the Bibiani and Chirano mines at 20% of the prevailing market price. The stream includes a 50% buyback provision and a reduced stream rate after certain delivery thresholds.

Stage 2 Financing: $200 million The company plans to secure an additional $200 million in early 2025 to support working capital and liquidity needs. This includes a $150 million senior debt facility (comprising a $100 million term loan with an 18-month grace period and a $50 million revolving credit facility) arranged by RMB, which has received preliminary approvals for 50% of the amount. A $50 million standby equity commitment will be available through 2025 if needed for liquidity requirements.