Asante locks in $470M refinancing, eyes TSXV debut

[Redator]

Asante Gold (CSE: ASE) has secured $470 million to refinance debt, fund expansion at its Bibiani and Chirano gold mines in Ghana, and prepare for a mid-August TSX Venture Exchange debut.

The financing package includes $150 million in senior debt underwritten by South Africa’s Rand Merchant Bank, as well as up to $125 million in subordinated debt anchored by $75 million from London-based private equity firm Appian Capital. Asante has also arranged a $50 million gold-stream facility tied to production from its Bibiani and Chirano mines.

In addition, the company has secured $110 million in bridge financing from lenders in the UAE and Ghana to help fund pit expansion and commission the sulphide circuit at Bibiani. The equity portion totals about $85 million so far, with Appian as the lead investor, as Asante targets raising up to $130 million.

This influx is intended to eliminate Asante’s debt obligations tied to Kinross Gold (TSX: K; NYSE: KGC) from its 2022 acquisition of Chirano, a $225 million share-and-cash deal that initially granted Kinross a 9.9% stake. Under the revised terms, Kinross will convert part of its position into equity—raising its stake to just under 18%—while Asante gains extended and clarified repayment terms.

The new funding “will clear the path to achieve our goal of gold production of more than 500,000 oz. per year by 2028 at significantly lower all-in sustaining costs,” president and CEO Dave Anthony said in a release. Proceeds will accelerate Bibiani pit expansion and advance underground work at Chirano across an 80-sq.-km land package, he said.

Double output

Asante produced about 76,000 oz. of gold last year and expects to more than double production in 2025 to 172,000 oz. The sulphide plant at Bibiani is scheduled to commission in the third quarter, and its underground production to ramp up by 2026. With Chirano projected to exceed 200,000 oz. annually within two years, Asante is set to become a mid-tier gold producer.

Tel Aviv-based platform TipRanks notes that while Asante is seen as overvalued based on current fundamentals, it displays “strong technical momentum and positive corporate developments, tempered by financial challenges and valuation considerations.”

Shares in Asante closed at C$1.47 on the Canadian Securities Exchange in Toronto on Tuesday for a market capitalization of C$732 million.

Asante has shown a pattern of serial funding and restructuring—through private placements, forward gold contracts, debt refinancing, bridge loans and gold streaming arrangements—to steady the company’s capital-intensive growth. In October, the company secured $525 million from UAE’s Fujairah Holdings through a forward sale of gold produced at Bibiani. That followed $100 million raised in September from a share sale to a strategic investor.

By clearing debt, funding mine expansion and gaining TSXV visibility, Asante is positioning itself to join the ranks of Canada’s next generation of mid-tier producers. It compares to mid-caps such as Maritime Resources (TSXV: MAE) and GoGold Resources (TSX: GGD).

Its operational scale and capital structure may now edge it closer to companies like G2 Goldfields (TSX: GTWO) and Mineros (TSX: MSA), which hover around equivalent production profiles and valuations.