Vancouver, British Columbia, July15, 2022 – Asante Gold Corporation (CSE:ASE GSE:ASG | FRANKFURT:1A9 | U.S.OTC:ASGOF) (“Asante” or the “Company”) announces that effective July 15, 2022 the Company has completed the first US$100 million tranche of a US$140 million financing package from strategic financial institutions in Ghana (the “Financing Institutions”).
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.
Repayment terms are to be 25% of the principal and interest in four equal instalments 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 7%. The annual interest rate of this gold forward facility is 7.53%.
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 an 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 thanks the Financing Institutions for their confidence and financial support as Asante continues to develop its production profile in Ghana.
The Company is also in advanced discussions on additional senior secured debt facilities to provide for ongoing sustaining capital.