Asante Announces Commitments of $470 Million Anchored by Appian and RMB; TSX-V Conditional Acceptance for Listing
(All amounts expressed in U.S. dollars unless otherwise noted)
VANCOUVER, British Columbia, June 17, 2025 (GLOBE NEWSWIRE) -- Asante Gold Corporation (CSE:ASE, GSE: ASG, FRANKFURT:1A9, OTC:ASGOF) ("Asante" or the "Company") is pleased to announce that it has received $470 million in credit and equity commitments, forming the foundation of a comprehensive financing solution that, when completed, would fully fund the Company's growth plans and recapitalize its short-term liabilities. This includes a $175 million financing package from private funds advised by Appian Capital Advisory LLP ("Appian") and a $170 million credit and underwrite commitment from FirstRand Bank Limited (acting through its Rand Merchant Bank division) ("RMB"). The Company is also pleased to announce that it has received conditional acceptance for the listing of the Common Shares on the TSX Venture Exchange (the "TSX-V").
The above commitments underpin a non-dilutive financing package comprised of a senior debt facility in the amount of $150 million (the "Senior Debt Facility"), subordinated debt in the amount of up to $125 million (the "Subordinated Debt Facility"), and a gold stream financing in the amount of $50 million (the "Gold Stream") (collectively the "Financing Package"). Completion of the Financing Package is subject to the negotiation of definitive documentation, satisfaction of customary conditions precedent and the completion of a transaction with Kinross Gold Corporation ("Kinross") to settle outstanding liabilities. In addition, completion of the Financing Package is conditional on raising approximately $130 million of equity, for which commitments of $85 million (including $10 million from Appian) have been received and discussions with other parties are advanced. The completion of the Financing Package and related transactions is expected to occur by the end of July 2025.
Dave Anthony, President and CEO stated: "This comprehensive Financing Package will allow Asante to realize the true potential of our assets. This will clear the path to achieve our goal of gold production of more than 500,000 ounces per year by 2028 at significantly lower all-in sustaining costs, with over $2 billion of free cash flow generation expected through 2029 as described in our recent five-year outlook (see news release dated May 5, 2025). Our extensive land package at Bibiani and Chirano encompasses 80 kilometres of strike length on some of Ghana's most prospective ground, with significant exploration upside remaining."
David Wiens, CFO stated: "We are pleased to partner with Appian and RMB, leading mining-focused financial institutions with a rigorous technical approach, in structuring a comprehensive financing solution for Asante. I would like to thank our technical services, operations, finance and legal teams, as well as our financial advisor Endeavour Financial, for their tireless efforts and support to advance this process. We are on course to being fully funded and well capitalized by the end of July. In addition, a listing on the TSX-V is expected to provide added liquidity and increased exposure to a wider pool of investors."
HIGHLIGHTS
$470 million of credit and equity commitments provides anchor for fully funded solution for growth plans and recapitalization needs
Appian: $175 million financing package
$40 million allocation to Senior Debt Facility syndication structured by RMB
$75 million Subordinated Debt Facility
$50 million Gold Stream with 100% buyback rights
$10 million equity subscription
RMB: $170 million credit commitment
$110 million of allocation and underwriting commitments to Senior Debt Facility
$50 million hedging lines to execute downside gold price protection program
$10 million environmental guarantee
TSX-V conditional acceptance for listing of common shares received
Targeted listing in August 2025, subject to satisfaction of conditions
Balance sheet transformation:
Elimination of overdue trade payables and existing short-term debt facilities
Elimination of short-term Kinross liabilities with comprehensive restructuring agreement
Operational use of proceeds, as described in the Company's five-year outlook:
Bibiani: pit expansion, sulphide treatment plant completion, community resettlement, underground mine development
Chirano: mobile equipment, underground development and expansion, plant upgrades
Anticipated closing of all transactions by July 31, 2025
FINANCING PACKAGE
Senior Debt Facility: $150 million
The Senior Debt Facility will be comprised of a term loan (the "Term Loan") of approximately $120 million and a revolving credit facility (the "RCF") of approximately $30 million. The Term Loan will have a five-year term, with an 18-month grace period and principal amortization over the following 42 months, initially bearing interest at a rate of SOFR + 6.50%, subject to reduction upon the achievement of certain operational milestones. The RCF will have a three-year term and will bear interest at a rate of SOFR ...
