Asante Gold Announces C$125 Million Bought Deal Private Placement, C$13.8 Million Non-Brokered Private Placement, Access to US$30 Million Senior Debt Accordion
Executive Summary
- AsanteGold entered into a bought‑deal private placement with BMO Capital Markets for up to 78,125,000 common shares at C$1.60 each, targeting C$125 million in gross proceeds.
- The company also arranged a related‑party non‑brokered sale of 8,625,000 shares to Executive Chairman Malik Easah for an additional C$13.8 million.
- A senior debt “Accordion” facility was secured, allowing an increase of US$30 million in total commitments, contingent on a US$90 million equity raise and other covenants.
Key Details
- Brokered Offering (bought‑deal private placement)
- Lead underwriter & sole bookrunner: BMO Capital Markets (with syndicate underwriters).
- Shares offered: 78,125,000 common shares.
- Price per share: C$1.60.
- Gross proceeds: C$125 million.
- Underwriter option: up to 11,718,750 additional shares (≈ C$18.75 million) exercisable ≤48 h before closing.
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Anticipated closing: on or about 6 Jan 2026 (subject to regulatory approvals and TSX‑V acceptance).
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Non‑Brokered Private Placement (Related‑Party Transaction)
- Purchaser: Malik Easah, Executive Chairman of AsanteGold.
- Shares sold: 8,625,000 common shares at the same C$1.60 price.
- Gross proceeds: C$13.8 million.
- Anticipated closing: on or about 31 Jan 2026, also subject to approvals and TSX‑V acceptance.
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Transaction qualifies as a “related party transaction” under MI 61‑101; exemption from formal valuation/minority approval because the fair market value does not exceed 25 % of market cap.
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Use of Proceeds
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Net proceeds from both offerings will fund development and growth at the Bibiani and Chirano gold mines and provide general working capital.
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Statutory Hold Period
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Shares issued in both the brokered and non‑brokered placements are subject to a four‑month statutory hold period under Canadian securities law.
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Senior Debt “Accordion” Facility
- Existing senior loan facility amended to allow an additional commitment of US$30 million (the “Accordion”).
- Provider: GCB Bank Plc (anticipated).
- Closing expected to coincide with the equity offerings’ closing.
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Conditions for Accordion drawdown:
- Completion of an equity raise of at least US$90 million by 15 Jan 2026.
- Minimum liquidity covenant of US$40 million.
- Satisfaction of specified performance tests.
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Regulatory & Offering Restrictions
- Offerings are private placements exempt from prospectus requirements in Canada and the U.S.; no registration under the U.S. Securities Act; not to be offered or sold to U.S. persons absent exemption.
- All shares will be subject to applicable hold periods and securities law compliance.
Notable Quotes
- “The successful execution of these financing transactions provides AsanteGold with the capital needed to accelerate development at our key Ghanaian assets while maintaining a strong balance sheet,” – Dave Anthony, President & CEO.