Asante Gold Corporation, a gold exploration, development and operating company, has announced it has secured $470 million in credit and equity commitments to fully finance its growth strategy and recapitalize short-term liabilities. The company also revealed it has received conditional acceptance for the listing of its common shares on the TSX Venture Exchange (TSX-V), with the listing expected to complete by August 2025.
The comprehensive financing solution includes contributions from key financial institutions such as Appian Capital Advisory LLP (“Appian”) and FirstRand Bank Limited, through its Rand Merchant Bank division (“RMB”).
The funding package consists of a $150 million Senior Debt Facility, up to $125 million in Subordinated Debt, and a $50 million gold stream financing. Additionally, equity commitments totaling $85 million have already been secured, including $10 million from Appian, with the company working to raise a further $45 million in equity to complete the package.
Growth Acceleration Plans
President and CEO Dave Anthony expressed confidence that the financing would accelerate Asante’s development goals. “This comprehensive Financing Package will allow Asante to realize the true potential of our assets,” Anthony said. “It clears the path to achieving our goal of producing over 500,000 ounces of gold annually by 2028, with over $2 billion in projected free cash flow through 2029.”
Asante owns and operates the Bibiani and Chirano gold mines in Ghana, encompassing over 80 kilometres of strike length. Proceeds from the financing will support pit expansion, plant upgrades, underground mine development, and community resettlement efforts across both operations.
Key Financial Terms
The $150 million Senior Debt Facility is composed of a $120 million term loan and a $30 million revolving credit facility, bearing interest at SOFR + 6.50% and SOFR + 4.50% respectively. Appian and RMB will contribute $100 million in total to the senior facility, with RMB underwriting an additional $50 million. The facility also includes a $50 million hedging line and a $10 million environmental guarantee provided by RMB.
The Subordinated Debt Facility of up to $125 million is backed by Appian ($75 million) and another financial institution ($50 million). It carries a SOFR + 9.75% interest rate and allows payment-in-kind interest for the first 24 months to conserve cash flow.
Appian will also provide a $50 million gold stream financing, giving it rights to purchase a percentage of gold produced at Bibiani and Chirano at a discounted rate for a limited time. Importantly, Asante retains the right to buy back the gold stream under certain conditions.
Settlement of Kinross Liabilities
Asante has structured a parallel agreement with Kinross Gold Corporation to settle outstanding liabilities. The deal involves a cash payment of about $53 million, an increase in Kinross’s equity ownership to 9.9%, and the issuance of a convertible debenture and a non-convertible deferred note. The convertible debenture will mature after both the senior and subordinated debt facilities and carry a 3.0% annual interest rate paid in kind.
Following the deal, Kinross will relinquish its existing security interests in favor of a subordinated security package, aligning its position with other financiers and paving the way for a unified security structure over the Bibiani and Chirano mines.
TSX-V Listing on Track
The company also confirmed that it has received conditional acceptance for listing its common shares on the TSX-V. “A listing on the TSX-V is expected to provide added liquidity and increased exposure to a wider pool of investors,” said CFO David Wiens. “We are on course to being fully funded and well capitalized by the end of July.”
The completion of the financing package and related transactions is expected by July 31, 2025, subject to final documentation, regulatory approvals, and the satisfaction of customary closing conditions.
Once concluded, the financing will mark a significant step in transforming Asante’s balance sheet, enabling the company to eliminate short-term debt and trade payables while advancing long-term production and exploration goals.
