Asante Gold Corporation has announced the successful close of its previously disclosed bought deal private placement, raising gross proceeds of approximately CA$236.8 million. The financing involved the issuance of 163,300,000 subscription receipts priced at CA$1.45 each. The deal was fully subscribed, including the exercise in full of the underwriters’ option.
Under the terms of the agreement, each subscription receipt entitles its holder to receive one common share of Asante Gold, contingent upon the satisfaction of escrow release conditions. These conditions include the finalization of a financing package consisting of senior and subordinated debt facilities and a gold stream agreement totalling at least US$275 million.
The private placement was conducted by a syndicate of underwriters led by BMO Capital Markets as co-lead underwriter and sole bookrunner, with Clarus Securities Inc. and Jett Capital Advisors LLC also participating. The underwriters received a cash commission of 5.5% of gross proceeds, excluding certain president’s list investors.
Proceeds from the offering have been placed into escrow and will be held until the escrow release conditions are met, at which point the funds (minus final commissions) will be released to Asante Gold. If the conditions are not met before December 31, 2025, or if Asante announces it will not proceed, the funds will be returned to investors with accrued interest.
As part of a broader financing strategy, the company aims to secure a total package comprising a US$150 million senior debt facility, a US$125 million subordinated debt facility, and a US$50 million gold stream. Appian Capital Advisory Ltd. is expected to provide US$175 million, including a CA$10 million equity investment at the offering price. Rand Merchant Bank, a division of FirstRand Bank Limited, is committing US$170 million through debt, underwriting, hedging, and guarantees.
Additionally, Asante is restructuring its obligations to Kinross Gold Corporation. The company plans to make a cash payment of approximately US$53 million and issue shares to increase Kinross’ equity stake to 9.9%. Kinross will also receive a convertible debenture and a deferred note to settle any remaining balances.
In light of the new capital structure, Asante has cancelled the third tranche (US$40 million) of its earlier US$100 million non-brokered private placement.
Operationally, Asante is advancing development at its Bibiani and Chirano gold mines in Ghana and progressing technical studies at its Kubi Gold Project. Proceeds from this placement and the larger financing package will support these projects, repay short-term liabilities, and strengthen general working capital.
