Asante Gold (CSE: ASE; US-OTC: ASGOF) has secured US$500 million from UAE’s Fujairah Holdings for the forward sale of gold produced at its Bibiani mine in Ghana. An advance deposit of US$100 million has already been paid to Asante’s subsidiary.
The payment will enable Asante to accelerate the ramp-up of mining activities and completion of the sulphide treatment plant at Bibiani, which is a crucial part of the company’s plans to grow the mine’s annual gold production to over 250,000 ounces, CEO Dave Anthony said. Once complete, the plant is expected to significantly boost its gold recovery rate from the current 70% to nearly 92%.
“This agreement will enable us to immediately accelerate the ramp-up of mining activities and completion of the sulphide treatment plant,” president and CEO Dave Anthony said in a release. “We plan to increase gold production beyond 15,000 ounces per month at Bibiani by mid-year, while we work to complete our other funding initiatives.”
Acquired from Australia’s Resolute Mining (ASX: RSG; LSE: RSG) in 2021, the Bibiani mine represents one of Asante’s two main assets based in Ghana. Its other producing mine is Chirano, acquired from Kinross Gold (TSX: K) in 2022.
The gold forward purchase agreement follows a string of financings by Asante to support its growth plans in the West African nation. These include a US$100 million equity private placement, refinancing of about US$100 million with Kinross, a US$75 million bond funded by Ghanaian investors and a US$50 million syndicated gold stream facility.
The initial deposit from Fujairah, its second-largest shareholder, will cover gold deliveries from Bibiani commencing March 28 through June 28, 2025.
Shares of Asante Gold rose 2.7% to $1.12 apiece in late afternoon trading on Thursday, for a market capitalization $566.6 million.
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