February 10, 2025

Asante Gold secures $500 million forward gold agreement to boost Bibiani operations

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Asante Gold Corporation has secured a major milestone in its operations with the signing of a $500 million Gold Forward Purchase Agreement with Fujairah Holdings LLC. This deal is aimed at significantly advancing the company’s Bibiani Gold Mine located in Ghana’s Western North Region. The agreement, executed through Asante’s subsidiary, Asante Gold Bibiani Ltd., provides the company with $100 million in revolving financing over the next two years, which will be instrumental in ramping up mining operations and completing key infrastructure projects at the Bibiani site.

Dave Anthony, the President and CEO of Asante Gold, expressed his enthusiasm about the partnership, calling it a transformative move for the company. He stated that the deal would enable Asante to immediately accelerate mining activities and complete the sulphide treatment plant at Bibiani, which is a critical part of its expansion plans. Anthony highlighted that the goal is to significantly increase gold production at Bibiani to over 15,000 ounces per month by mid-2025. He also mentioned that Asante is working on additional funding initiatives, with this agreement providing the initial capital to kick-start the process. “We are pleased to announce this Gold Forward Agreement with Fujairah, a strategic and foundational partner for Asante,” said Anthony.

In essence, a Gold Forward Agreement is a financial contract where two parties agree to buy or sell an asset, in this case, gold, at a future date for a predetermined price. Under the terms of this agreement, Asante has committed to delivering refined gold to Fujairah Holdings LLC in exchange for an upfront payment of $500 million over the span of two years. Fujairah will make an initial deposit of $100 million, which will be repaid through gold deliveries, starting in March 2025. These deliveries will be priced at a 7% discount from the prevailing market price of gold at the time. The remaining $400 million will be disbursed in installments, with gold deliveries structured in a similar manner.

This agreement will provide Asante with immediate liquidity, allowing the company to accelerate its mining activities and the completion of its infrastructure developments at Bibiani. With this financing, Asante aims to enhance its operations and ensure a steady flow of gold deliveries to Fujairah over the contract period. The funds will primarily be directed towards accelerating mining operations, which include the establishment of a sulphide treatment plant at Bibiani—a crucial step in scaling up production and increasing output.

The financial arrangement is also underpinned by strong security measures, with Asante Bibiani’s obligations being secured by a parent guarantee and a debenture against its assets. Fujairah Holdings has agreed to take a subordinated position in relation to senior lenders and bondholders. This agreement is contingent on the finalization of an intercreditor agreement related to a broader financing package that Asante announced in October 2024.

For Asante Gold, this Gold Forward Agreement represents a strategic step in expanding its production capacity and reinforcing its financial position. With the company’s focus on increasing its gold output at Bibiani, the financial infusion from this deal will play a key role in scaling up operations and ensuring that the company remains a dominant player in Ghana’s gold mining industry. The agreement also serves as a demonstration of Asante’s growing financial stability and its ability to attract valuable partnerships in the global mining sector.

Looking forward, Asante plans to use the funds from this agreement to support the expansion of its operations at Bibiani, complete key infrastructure projects, and increase gold production. This partnership with Fujairah Holdings LLC is expected to significantly contribute to the company’s long-term growth strategy and its goal of becoming one of the leading gold producers in West Africa.

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