Asante Gold receives $125M (U.S.) from 2nd utilization

Executive Summary

• Asante Gold Corp. has completed the final tranche of its $500 million financing package by receiving $125 million in net proceeds from the second utilization of its $150 million senior debt facility.
• The company has secured the full availability of the $20 million revolving credit facility under the same senior debt facility, bringing the total secured capital to $500 million.
• Proceeds are designated for development and growth at the Bibiani and Chirano mines, repayment of a cash payment to Kinross, retirement of short-term liabilities, and general working capital.

Key Details

• Financing Structure:
  • Total Financing Package: $500 million.
  • Senior Debt Facility: $150 million total capacity.
  • First Utilization: $5 million completed on Aug 14, 2025.
  • Second Utilization: $125 million completed and net proceeds received (date not explicitly stated in text, but follows Aug 11 announcement).
  • Revolving Credit Facility: $20 million fully available under the senior debt facility.
• Use of Proceeds:
  • Development and growth expenditures at Bibiani and Chirano mines.
  • Cash payment to Kinross (satisfied on Aug 12, 2025).
  • Retirement of short-term liabilities.
  • General working capital purposes.
• Price Protection Program:
  • Executed with RMB pursuant to previously established credit lines.
  • Short-Term Forward Sale: Swap transactions for ~154,000 oz of gold between Sept 2025 and April 2026.
  • Average Price: $3,386 per ounce for a portion of production.
  • Volume: Ranges from ~13,000 oz to ~23,000 oz per month.
  • Purpose: Protect margins during the critical operational ramp-up period of the next eight months.
  • Deferred Premium Puts: Purchased for potential sale of up to ~395,000 oz between May 2026 and Jan 2028.
  • Strike Prices: $3,000 to $3,100 per ounce.
  • Condition: Only utilized if gold prices decline below strike levels; company remains unhedged to price increases.
• Strategic Goals:
  • Targeting annual gold production over 500,000 ounces by 2028.
  • Targeting significantly lower all-in sustaining costs.
  • Funds to be deployed immediately for growth plans at Bibiani and Chirano.

Notable Quotes

• "Closing this financing is transformative for Asante. With $500-million in capital secured, we are well positioned to execute on our growth plans for Bibiani and Chirano, targeting annual gold production over 500,000 ounces by 2028 at significantly lower all-in sustaining costs. We remain focused on disciplined execution and delivering results for shareholders as these funds are deployed immediately." — Dave Anthony, President and CEO