Asante Gold enters into US$100m equity financing agreement with strategic investor
Asante Gold Corporation has entered into an equity financing agreement with a strategic investor, pursuant to which Asante will sell, on a non-brokered private placement basis, 90,666,667 common shares at a purchase price of C$1.50 for aggregate gross proceeds of C$136 million (US$100 million).
Closing of the Offering will occur in three tranches, with the first tranche of US$25 million scheduled to close on October 15, 2024, the second tranche of US$35 million scheduled to close on November 14, 2024, and the third tranche of US$40 million scheduled to close December 5, 2024, subject to receipt of all necessary regulatory approvals, including the approval of the Canadian Securities Exchange.
In a statement issued on 24 September 2024, Asante Gold said the use of proceeds from the Offering may include the funding of growth and development initiatives at the Bibiani and Chirano mines, as well as acquisition opportunities and refinancing of liabilities.
“This Offering is a significant component of the comprehensive financing initiative that Asante has advanced. Another component, the Ghanaian bond program was announced on September 19, 2024. This initiative is also advancing in good order,” stated Dave Anthony, Asante’s President and CEO, who added, “We look forward to providing additional updates on our financing initiatives to fund the Company’s development and recapitalize our short-term liabilities.”
The common shares to be issued under the Offering will be subject to a four-month hold period from the date of issue in accordance with applicable Canadian securities laws.
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