Asante Gold Corporation has received C$237 million in net proceeds from its equity offering completed on July 7, 2025. The funds were released after the company met all escrow conditions on August 12, 2025, for its private placement of 163.3 million subscription receipts at C$1.45 each. The company has also completed, on the same date, the restructuring of its obligations to Kinross Gold Corporation. This included a cash payment, share issuance, and a secured convertible debenture.
In connection with the satisfaction of the escrow release conditions, the proceeds of the Offering and accrued interest thereon, net of the commission and expenses payable to the underwriters of the Offering, have been released to the Company by the subscription receipt agent and each Subscription Receipt automatically converted into one common share of the Company (each, a “Common Share”).
The Common Shares issued upon conversion of the Subscription Receipts remain subject to a statutory four month hold period pursuant to applicable Canadian securities laws which will expire on November 8, 2025.
In accordance with the terms of the definitive agreement (the “Kinross Agreement”) entered into with Kinross Gold Corporation (“Kinross”), as announced August 11, 2025, the Company has restructured certain obligations owing to Kinross by (i) paying to Kinross an aggregate of $53M in cash; (ii) issuing to Kinross an aggregate of 36,927,650 Common Shares at a deemed issue price of C$1.45 per Common Share, and (iii) issuing to Kinross a secured convertible debenture in a principal amount of approximately $80M (the “Convertible Debenture”). In connection with the foregoing, Kinross has also relinquished its existing security interest in the downstream entities that own the Chirano Mine in favour of a security package that is the same as, but subordinate to, that held by Company’s senior lenders.
The Common Shares and Convertible Debenture issued to Kinross are subject to a statutory four month hold period pursuant to applicable Canadian securities laws which will expire on December 13, 2025.
As noted in the Company’s news release dated August 11, 2025, the Offering is a component of the first stage of the Financing Package that is expected to close by August 15, 2025, which also includes the $125M Mezzanine Facility, the $50M Gold Stream, the $10M Non-Brokered Private Placement, and a $5M utilization of the Senior Debt Facility (each as defined in the earlier news release). For additional information in respect of the Financing Package, the Kinross Agreement and the Convertible Debenture, please refer to the Company’s news release dated August 11, 2025.
In connection with the $175M participation of certain funds advised by Appian Capital Advisory Limited (“Appian”) in the Financing Package, the Company granted Appian 16,180,864 non-transferrable Common Share purchase warrants (the “Warrants”). Each Warrant entitles Appian to purchase one Common Share at an exercise price of C$1.67 per Common Share on or prior to August 11, 2029 (4 years from issuance), subject to certain acceleration provisions. The Warrants are subject to a statutory four month hold period pursuant to applicable Canadian securities laws which will expire on December 12, 2025.
The Company intends to use the net proceeds of the Offering, together with the proceeds of the Financing Package, for development and growth expenditures at the Bibiani and Chirano mines, the above-noted cash payment to Kinross which has been satisfied, the retirement of short-term liabilities and for general working capital purposes.
