Asante Gold Corporation announces that its subsidiary Asante Gold Bibiani Ltd, which owns the Bibiani mine, has entered into an agreement with Fujairah Holdings LLC for the forward sale of US$500 million in gold which will provide US$100 million of financing to the Company on a revolving basis over a period of approximately two years on terms described below.
Dave Anthony, President and CEO stated, “We are pleased to announce this Gold Forward Agreement with Fujairah, a strategic and foundational partner for Asante. This Agreement will enable us to immediately accelerate the ramp-up of mining activities and completion of the sulphide treatment plant. We plan to increase gold production beyond 15,000 ounces per month at Bibiani by mid-year, while we work to complete our other funding initiatives.”
As an advance deposit toward future gold deliveries, Fujairah has paid US$100 million to Asante Bibiani. Under the Gold Forward Agreement, there is a three month grace period in respect of the Initial Deposit, following which the Company will deliver US$100 million of refined gold to Fujairah commencing March 28, 2025 through June 28, 2025, with such deliveries to be credited against the Initial Deposit.
Following the Initial Deposit, a series of four additional advance deposits and gold deliveries will be made in an aggregate amount of US$400 million over a period of 22 months. There will be a two month grace period in respect of each such US$100 million additional advance deposit, following which the Company will deliver US$100 million of refined gold to Fujairah over four months. All gold deliveries will be priced at a seven percent discount to the market price of gold at the time of delivery.
The proceeds of the Initial Deposit will primarily be used to advance growth initiatives at the Company’s operations, including accelerated ramp-up of mining activities and completion of a sulphide treatment plant at the Bibiani mine.
Asante Bibiani’s obligations under the Gold Forward Agreement will be secured by a parent guarantee from Asante and by a debenture in respect of Asante Bibiani’s assets. Fujairah has agreed to a subordinated position to senior lenders and bond holders following the effectiveness of an intercreditor agreement that is expected to be entered into in connection with the Company’s proposed financing package announced on October 30, 2024.
With regard to the previously announced US$100 million non-brokered private placement, the Company confirms that closing of the US$40 million third tranche has not as yet occurred. The Company is determining modification or cancellation of the third tranche of the private placement, and will provide an update when determination has been made.
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