- Asante Gold Corporation (ASE) has completed the first tranche of a US$140 million financing package from strategic financial institutions in Ghana
- The company will use the initial drawdown of US$100 million to cover local operating costs and its near-term broader funding and strategic objectives
- Repayment terms are to be 25 per cent of the principal and interest in four equal instalments of $26.88 million, with the final payment due July 12, 2023
- Asante is a gold exploration, development and operating company with a high-quality portfolio of projects in Ghana
- Asante Gold Corporation was down 1.54 per cent, trading at C$1.28 at 09:47 ET
Asante Gold Corporation (ASE) has completed the first tranche of a US$140 million financing package from strategic financial institutions in Ghana.
The company will use the initial drawdown of $100 million to cover local operating costs and its near-term broader funding and strategic objectives.
The terms of the transaction stipulate that repayment will be 25 per cent of the principal and interest in four equal instalments of $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 7 per cent.
The annual interest rate of this gold forward facility is 7.53 per cent.
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.
Through this facility, Asante obtains immediate and non-dilutive financing, repayable from gold production. The Bibiani Mine has completed its commissioning, with the first gold pour announced on July 7, 2022.
The company is also in advanced discussions on additional senior secured debt facilities to provide for ongoing sustaining capital.
Asante is a gold exploration, development and operating company with a high-quality portfolio of projects in Ghana.
Asante Gold Corporation was down 1.54 per cent, trading at C$1.28 at 09:47 ET.