Asante Gold (CSE: ASE) has secured $500 million from UAE’s Fujairah Holdings for the forward sale of gold produced at its Bibiani mine. An advance deposit of $100 million has already been paid to Asante’s subsidiary.
Chief executive Dave Anthony said this payment will enable Asante to “immediately accelerate” the ramp-up of mining activities and completion of the sulphide treatment plant at Bibiani, a crucial part of the company’s plans to grow the mine’s annual gold production to over 250,000 oz. Once complete, the plant is expected to significantly boost its gold recovery rate from the current 70% to nearly 92%.
The Vancouver-based gold miner said it expects gold production at Bibiani to exceed 15,000 oz. per month by mid-year.
Acquired from Australia’s Resolute Mining (ASX, LON: RSG) in 2021, the Bibiani mine represents one of Asante’s two main assets based in Ghana. Its other producing mine is Chirano, acquired from Kinross Gold (TSX: K) in 2022.
The gold forward purchase agreement follows a string of financings by Asante to support its growth plans in the African nation. These include a $100 million equity private placement, an approximate $100 million refinancing with Kinross, a $75 million bond funded by Ghanaian investors and a $50 million syndicated gold stream facility.
The initial deposit from Fujairah, its second-largest shareholder, will cover gold deliveries from Bibiani commencing March 28 through June 28, 2025.
Shares of Asante Gold rose 2.7% in late afternoon trading Thursday, for a market capitalization C$566.6 million.
