Asante Signs Definitive Agreements to Unlock Approximately $500M of Financing Proceeds

Core Viewpoint - Asante Gold Corporation has finalized key agreements for a financing package totaling approximately $500 million to support its operations and restructuring with Kinross Gold Corporation [1][2][3] Financing Package Overview - The financing package includes a senior debt facility of $150 million, a subordinated debt facility of $125 million, and a gold stream financing of $50 million, alongside a C$237 million brokered private placement and a $10 million non-brokered private placement [2][3][7] - The total gross proceeds expected from the financing package are approximately $500 million, with the first stage of funding anticipated to close by August 15, 2025 [2][5] Use of Proceeds - The net proceeds from the financing package will be allocated for development and growth expenditures at the Bibiani and Chirano mines, cash payments to Kinross, retirement of short-term liabilities, and general working capital [3] Anticipated Closing Timeline - The financing package will close in two stages, with the first stage expected to include approximately $350 million in funding [4][5] - The second stage is anticipated to close by the end of August 2025, involving the full availability of the remaining $145 million under the senior debt facility [6] Details of Financing Components - The senior debt facility consists of a $130 million term loan and a $20 million revolving credit facility, with an interest rate of SOFR + 6.50% [8][9] - The mezzanine facility totals $125 million, with investments from Appian and Helikon Investments, and an interest rate of SOFR + 9.75% [12] - The gold stream financing involves selling 1.50% of payable gold from the Bibiani and Chirano mines at 20% of the market price for the first 24 months, increasing to 2.25% thereafter [14] Kinross Restructuring Agreement - Asante has entered into a restructuring agreement with Kinross, which includes a cash payment of approximately $53 million, issuance of 36,927,650 common shares, and a secured convertible debenture of approximately $80 million [18][19] - The convertible debenture will have a seven-year maturity and bear interest at 3.0% per annum, with specific conversion terms [19] Security Package - The obligations under the financing facilities will be secured by certain assets of Asante and its subsidiaries, including the Chirano and Bibiani mines, with a defined order of priority for secured obligations [20]