Asante Signs Definitive Agreements to Unlock Approximately $500M of Financing Proceeds
VANCOUVER, British Columbia, Aug. 11, 2025 (GLOBE NEWSWIRE) -- Asante Gold Corporation (CSE:ASE, GSE: ASG, FRANKFURT:1A9, OTCQX:ASGOF) ("Asante" or the "Company") is pleased to announce that it has entered into the key definitive agreements (the "Agreements") for the Company's previously announced financing plans, and a restructuring agreement with Kinross Gold Corporation ("Kinross"). All amounts are in U.S. dollars unless otherwise indicated.
The Agreements encompass a senior debt facility in the amount of $150 million ("M") (the "Senior Debt Facility"), a subordinated debt facility in the amount of $125M (the "Mezzanine Facility") and a gold stream financing in the amount of $50M (the "Gold Stream"). Along with the C$237M bought deal private placement of subscription receipts completed on July 7, 2025 (the "Brokered Private Placement") and a further anticipated $10M non-brokered private placement of common shares ("Common Shares") of the Company (the "Non-Brokered Private Placement" and together with the Senior Debt Facility, the Mezzanine Facility, the Gold Stream and the Brokered Private Placement, the "Financing Package"), the Company expects to receive approximately $500M in total gross proceeds in August 2025 (see "Anticipated Closing Timeline" below). The material terms of the Financing Package (see "Financing Package Summary" below) are consistent with the Company's news releases dated June 17, 2025 and July 7, 2025.
The Company intends to use the net proceeds of the Financing Package for development and growth expenditures at the Bibiani and Chirano mines in Ghana, satisfaction of a cash payment due to Kinross, the retirement of short-term liabilities and for general working capital purposes.
ANTICIPATED CLOSING TIMELINE
The Company expects the Financing Package to close in two stages as certain conditions precedent ("CPs") are satisfied.
The first stage, the components of which are anticipated to close by August 15, 2025, will include approximately $350M of funding consisting of: (i) the release of the net proceeds being held in escrow in connection with the C$237M Brokered Private Placement; (ii) the $125M Mezzanine Facility; (iii) the $50M Gold Stream; (iv) the $10M Non-Brokered Private Placement; and (v) a $5M utilization of the Senior Debt Facility. The Kinross restructuring is expected to be completed concurrent with the release of the net proceeds being held in escrow in connection with the Brokered Private Placement, which is expected to occur in advance of draw down under the Senior Debt Facility, Mezzanine Facility and Gold Stream.
The second stage, anticipated to close by the end of August 2025, will encompass a second utilization and the full availability of the remaining $145M capacity under the Senior Debt Facility.
FINANCING PACKAGE SUMMARY
C$237M Brokered Private Placement
The Financing Package includes the previously completed bought deal private placement of an aggregate of 163.3M subscription receipts of the Company (the "Subscription Receipts") at a price of C$1.45 per Subscription Receipt for aggregate gross proceeds of approximately C$237M. Each Subscription Receipt entitles the holder thereof to receive one Common Share upon the satisfaction or waiver of certain escrow release conditions, principally being the fulfillment of the CPs to the first drawdown under the definitive agreements comprising a financing package (being a facility agreement in respect of a senior secured debt facility, mezzanine facility agreement in respect of a subordinated secured debt facility, and/or a gold purchase and sale agreement in respect of a gold stream financing) (the "Escrow Release Conditions"). The Company expects that these Escrow Release Conditions will be fulfilled in the first stage of closing as noted above and the net proceeds being held in escrow to be released to the Company.
$150M Senior Debt Facility
The Company has entered into a senior facilities agreement (the "Senior Debt Facility Agreement") providing for the Senior Debt Facility, which consists of a term loan (the "Term Loan") in the amount of $130M and a revolving credit facility (the "RCF") in the amount of $20M. The Term Loan will have a five-year term, with an 18-month grace period and principal amortization over the following 42 months, initially bearing interest at a rate of SOFR + 6.50%, subject to reduction upon the achievement of certain operational milestones. The ...
