Asante Gold Secures $500m Financing Package, Restructures Kinross Obligations
Asante Gold Corporation has entered into definitive agreements for its previously announced $500 million financing package and a restructuring agreement with Kinross Gold Corporation, aimed at advancing the Bibiani and Chirano mines in Ghana, settling liabilities, and strengthening working capital.
The financing comprises a $150 million senior debt facility, a $125 million subordinated debt (mezzanine) facility, a $50 million gold stream agreement, a C$237 million (US$) brokered private placement completed in July 2025, and a planned $10 million non-brokered private placement.
Two-Stage Closing Expected in August
The first stage, targeted for completion by August 15, 2025, will release approximately $350 million, including proceeds from the brokered private placement, the mezzanine facility, the gold stream, the non-brokered placement, and an initial $5 million draw on the senior debt facility. The second stage, by end-August, will unlock the remaining $145 million of the senior facility.
Financing Terms
Senior Debt Facility: $130 million term loan (SOFR + 6.50%) and $20 million revolving credit facility (SOFR + 4.50%) anchored by Rand Merchant Bank, with participation from Appian, Ecobank Ghana, and Fidelity Bank Ghana.
Mezzanine Facility: $125 million from Appian ($75m) and Helikon Investments ($50m) at SOFR + 9.75%, with flexible payment-in-kind options in the first two years.
Gold Stream: $50 million from Appian in exchange for 1.50% of payable gold from Bibiani and Chirano for 24 months, rising to 2.25% thereafter until delivery thresholds are met.
Non-Brokered Placement: $10 million from Appian, alongside issuance of 16.18 million warrants exercisable at C$1.67.
Kinross Restructuring
Asante will pay Kinross $53 million in cash, issue 36.93 million common shares at C$1.45, and issue a $80 million convertible debenture maturing in seven years at 3% PIK interest, convertible for five years at C$1.81. Kinross will release its security interest in the Chirano Mine, retaining a subordinated position to Asante’s senior lenders. Asante will also commit $10 million toward an environmental guarantee for Chirano.
The company expects the combined transactions to close in August 2025, providing the funding base for mine development, debt reduction, and operational expansion.
