Update: Asante Announces US$500 Million Gold Forward Purchase Agreement

Asante Gold (ASE.CN) Thursday said it entered into an agreement with Fujairah Holdings LLC for the forward sale of US$500 million in gold from the Bibiani mine in Ghana which will provide US$100 million of financing to the company on a revolving basis over a period of approximately two years. As an advance deposit toward future gold deliveries, Fujairah paid US$100 million to the company's Asante Bibiani unit. Under the Gold Forward Agreement, there is a three month grace period in respect of the Initial Deposit, following which the company will deliver US$100 million of refined gold to Fujairah from March 28, 2025 through June 28, 2025, with such deliveries to be credited against the Initial Deposit. Following the Initial Deposit, a series of four additional advance deposits and gold deliveries will be made in an aggregate amount of US$400 million over a period of 22 months. The proceeds of the Initial Deposit will primarily be used to advance growth initiatives at the company's operations, including accelerated ramp-up of mining activities and completion of a sulfide treatment plant at the Bibiani mine. Asante shares were halted following its announcement, last trading down $0.08 to $1.09 on the Canadian Securities Exchange. Trading will resume at 1:00 p.m. Eastern time.