Asante Gold Corporation says it has completed the first US$100 million tranche of a US$140 million financing package from strategic financial institutions in Ghana.
The initial drawdown of US$100 million will be used to cover local operating costs and the company’s near-term broader funding and strategic objectives.
The company in a statement explained that repayment terms are to be 25 percent of the principal and interest in four equal installments of US$26.88 million, with the final payment due July 12, 2023.
“Settlement will be in US funds by delivery of gold at the financial institutions’ designated gold refinery in Switzerland and sold at the then Bloomberg BGN XAUUSD spot market price less seven percent. The annual interest rate of this gold-forward facility is 7.53 percent,” it said.
“The company assumes no derivative risks from the transaction as the loan principal is denominated in US funds and repayments from gold deliveries will be made in US funds, thereby providing a natural currency hedge,” it added.
The statement also indicated that through the facility, Asante obtains immediate and non-dilutive financing, repayable from gold production, noting that “the Bibiani Mine has completed its commissioning, with the first gold pour announced this month.”
Portions of the statement expressed gratitude to the financing institutions for their confidence and financial support as Asante continues to develop its production profile in Ghana.
Asante Gold Corporation
Asante is a gold exploration, development, and operating company with a high-quality portfolio of projects in Ghana. It is currently operating the Bibiani Gold Mine with forecast production of 175,000 oz of gold over the next 12 months, is completing the acquisition of the Chirano Gold Mine from Kinross Gold Corporation (the Chirano Acquisition), and is developing to production its Kubi Gold mine, all located on the prolific Bibiani and Ashanti Gold Belts.
Asante has an experienced and skilled team of mine finders, builders, and operators, with extensive experience in Ghana.
Asante is listed on the Canadian Securities Exchange, the Ghana Stock Exchange and the Frankfurt Stock Exchange.
Asante is also exploring its Keyhole, Fahiakoba, and Betenase projects for discoveries, all adjoining or along strike of major gold mines near the centre of Ghana’s Golden Triangle.
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