Asante Gold raises $173m to fund Ghana projects
Asante Gold Corporation has successfully secured $173 million through a private placement to support its mining operations in Ghana, particularly at the Bibiani and Chirano mines, and to settle outstanding debts.
Asante Gold Corporation has completed its previously announced bought deal private placement, raising gross proceeds of $173 million.
The funding was done through the issuance of $163.3 million subscription receipts, each priced at $1.06.
The offer was fully subscribed, including the full exercise of the underwriters’ option.
Each subscription receipt will convert into one common share of Asante Gold once escrow conditions are met.
These include securing a comprehensive financing package valued at no less than US$275 million. Until then, the proceeds will be held in escrow.
Commission
The placement was led by BMO Capital Markets as co-lead underwriter and sole bookrunner. Clarus Securities Inc. and Jett Capital Advisors LLC also participated in the underwriting syndicate.
The underwriters earned a cash commission of 5.5 per cent on the gross proceeds, excluding amounts raised from specific investors listed by the company’s leadership, commonly referred to as “president’s list investors”.
Conditions, strategy
The release of the escrow funds is conditional upon the completion of a larger financing arrangement, which includes a US$150 million senior debt facility, a US$125 million subordinated debt facility and a US$50 million gold stream agreement.
This package aims to provide Asante Gold with the capital needed to progress its projects and settle short-term financial obligations.
Appian Capital Advisory Ltd. is expected to contribute US$175 million, including a CA$10 million equity investment at the same share price as the private placement.
Rand Merchant Bank, part of FirstRand Bank Limited, is committing US$170 million in the form of debt, hedging, underwriting and guarantees.
Should the escrow conditions not be fulfilled by December 31, 2025, or if Asante indicates it will not go ahead with the plan, the funds will be returned to investors along with any interest earned.
Gold agreement
As part of its broader financial restructuring, Asante is also working to resolve its obligations to Kinross Gold Corporation.
The company has proposed a cash payment of around US$53 million and the issuance of shares, which will increase Kinross’ stake in Asante to 9.9 per cent.
In addition to this equity arrangement, Kinross will receive a convertible debenture and a deferred note to settle the remaining balance.
These steps are expected to strengthen Asante’s balance sheet and streamline its capital structure ahead of further investment and development.
Previous placement
Following the success of the current offering and the new financing arrangements, Asante has cancelled the third tranche—amounting to US$40 million—of its earlier US$100 million non-brokered private placement.
This move reflects the company’s decision to shift towards more structured and institutionally backed financing sources.
Ghana operations
Operationally, the company is advancing its work at the Bibiani and Chirano gold mines in Ghana.
It is also progressing technical studies at the Kubi Gold Project.
The funds raised through this placement, along with the expected financing package, will be used to further develop these projects, repay short-term debts and support general working capital needs.
Asante Gold’s decision to secure long-term capital comes as it seeks to solidify its position in Ghana’s gold mining sector, with a focus on enhancing production and sustaining growth through strategic partnerships and financial restructuring.