Asante Gold Secures $500 Million Gold Forward Agreement with Fujairah Holdings
Asante Gold Corporation has announced a $500 million gold forward sale agreement between its subsidiary, Asante Gold Bibiani Limited, and Fujairah Holdings LLC. The deal will provide $100 million in revolving financing over approximately two years to support the Bibiani mine’s operations and expansion plans.
Dave Anthony, President and CEO of Asante Gold Corporation, stated, “We are pleased to announce this Gold Forward Agreement with Fujairah, a strategic and foundational partner for Asante. This Agreement will enable us to immediately accelerate the ramp-up of mining activities and completion of the sulphide treatment plant. 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.”
Key Terms of the Agreement
Under the agreement:
- Fujairah Holdings has advanced an initial deposit of $100 million to Asante Gold Bibiani.
- Following a three-month grace period, the company will deliver $100 million worth of refined gold to Fujairah between March 28, 2025, and June 28, 2025.
- Four additional advance deposits, each worth $100 million, will follow over 22 months, with a two-month grace period preceding gold deliveries for each tranche.
- All gold deliveries will be priced at a 7% discount to the prevailing market price at the time of delivery.
Funding Allocation
Proceeds from the initial deposit will be used to advance the Bibiani mine’s operations, including the completion of a sulphide treatment plant and the accelerated ramp-up of mining activities. This aligns with the company’s goal of achieving gold production rates exceeding 15,000 ounces per month by mid-2024.
The agreement reflects Asante Gold’s commitment to enhancing its production capacity while securing strategic partnerships to support its long-term growth objectives.
