Asante Gold secures $100 million to grow Ghana mines
Canada’s Asante Gold (CNSX: ASE) has secured $100 million through the sale of shares to a strategic investor, which it will use to fund growth and development at its Bibiani and Chirano gold mines in Ghana.About 90.7 million shares, priced at C$1.50 each, will be sold to the unnamed party, with payments to be received in three instalments— $25 million in October, $35 million in November and $40 million in December. Shares in Asante are currently listed at C$1.52 each.Asante’s president and CEO Dave Anthony said the proceeds from the equity issue would also be put towards “acquisition opportunities” as well as refinancing of liabilities.The Vancouver-based company has a high-quality portfolio of projects and mines in Ghana, where it operates Bibiani and Chirano mines and continues with detailed technical studies at its Kubi gold project.The miner is aiming to boost its gold output this year, with plans to produce 100,000 ounces from Bibiani and 165,000 ounces from Chirano. Asante Gold to up production at Bibiani with new plantTo meet its targets, Asante is upgrading its operations at both sites. At the Bibiani mine, the company is installing new crushing equipment to increase ore processing capacity from 3.3 million tonnes per annum (Mtpa) to 3.6 Mtpa. At Chirano, Asante plans to install a tertiary crusher, raising throughput from the current 3.4-3.7 Mtpa to 4 Mtpa. This upgrade is expected to boost Chirano’s annual gold production to over 200,000 ounces within the next two years. Looking ahead, Asante plans to organically grow its total production to over 500,000 ounces per year by 2028. A key part of this strategy is the development of an underground section at Bibiani, slated to commence operations by mid-2025. The mine currently holds 3.5Moz of resources across all categories, while Chirano has 3.1Moz.Asante also noted it had agreed to non-binding terms on an amended repayment schedule with Kinross Gold Corp. for the balance on the $225 million acquisition of Kinross Gold’s 90% stake in Chirano mine in 2022.“Kinross and Asante expect to enter into a further amendment to its original share purchase agreement,” the company said. “Asante will issue full details on the amended repayment schedule when documentation is finalized,” it added.Ghana, where Asante has his mines and projects, reclaimed in 2022 its status as Africa’s top gold miner, thanks to 32% surge in production. Gold output rose to 3.7 million ounces in 2022 from 2.8 million ounces the previous year, when South Africa took the crown as the continent’s top bullion producer.Weiter zum vollständigen Artikel bei Mining.com
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