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Asante to raise US$100m for Bibiani

Canada-based and Ghana-focused Asante Gold is planning to raise US$100 million through a private placement.
Asante to raise US$100m for Bibiani Asante to raise US$100m for Bibiani Asante to raise US$100m for Bibiani Asante to raise US$100m for Bibiani Asante to raise US$100m for Bibiani

Nathan Richardson

The funds will be used to help pay off the acquisition of the Bibiani gold mine in Ghana and kick-start the mine's development. 

The company said it has received "significant investor interest" in the private placement, which is at a price of C$1.75 per common share. 

Asante said that Emiral Resources, which holds about 19.6% of the company's outstanding common shares, indicated that it would participate at a level sufficient to maintain its current percentage shareholding. 

"Funds will be used for working capital, including the payment of the second US$30 million payment to Resolute Mining Ltd for the Bibiani mine acquisition, initial mine development costs at the Bibiani mine, and for other potential opportunities," Asante said. 

Asante acquired the past-producing mine from Australian Securities Exchange-listed Resolute Mining in August last year in a US$90 million deal. 

Resolute picked the mine up in 2014 and investigated a restart, before announcing a strategic review and a sale to China's Chifeng Jilong Gold - which fell through after Ghana temporarily terminated the mining lease. 

Asante is planning for a first gold pour in the third quarter of this year and for production of 175,000ounces of gold for the first year, 220,000oz/y for year two, and 200,000-255,000oz/y for years three to eight. 

Asante shares traded at an all-time record of C$1.70 on February 17.