Asante Gold leverages share issuance to resolve $35M outstanding debt to creditors

By: Nii Ammui Fio | 2 mins read

Asante Gold Corporation, a gold exploration, development, and operating company, has issued 31,896,857 common shares to settle $35 million in outstanding debt owed to arm’s length creditors.

This strategic move forms part of the second tranche of Asante's $100 million non-brokered private placement, which concluded on November 15, 2024. The shares, valued at a deemed price of C$1.50 each, aim to address the company’s short-term liabilities while reinforcing trust among key stakeholders.

Dave Anthony, President and CEO of Asante, emphasized the importance of this arrangement in building confidence in the company’s future. “This represents a significant vote of confidence in the long-term future of Asante by key Ghanaian suppliers and partners who have chosen to participate as shareholders in the company,” Anthony stated.

The issued securities are subject to a hold period of four months and one day, as stipulated by applicable securities laws. Notably, Asante incurred no commissions or finder’s fees in connection with the second tranche closing.

With the successful completion of this tranche, the company has announced plans to execute the third and final tranche, valued at $40 million, by December 5, 2024. This financing initiative supports the company’s growth strategies, including ongoing operations at the Bibiani and Chirano Gold Mines.

Asante continues to advance its exploration and development efforts, including technical studies at the Kubi Gold Project and exploration at its Keyhole, Fahiakoba, and Betenase projects, all located within Ghana’s prolific Bibiani and Ashanti Gold Belts.

Leveraging its experienced team of mine finders, builders, and operators, Asante Gold remains focused on solidifying its position as a leading player in Ghana’s Golden Triangle. The company is listed on both the Canadian Securities Exchange and the Ghana Stock Exchange, reflecting its commitment to robust growth and stakeholder value.

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