Asante Gold Corporation has announced that it has entered into an agreement with Clarus Securities Inc., as Lead Agent, on behalf of a syndicate of agents in connection with a “best efforts” private placement of up to US$50,000,000, trading at C$1.80 per share.
The offering is expected to close on or about February 9, 2023, and is subject to a number of closing conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the Canadian Securities Exchange.
In the intervening time, the securities issued under the offering will be subjected to a four month hold period from the date of issue in accordance with applicable securities laws, a statement from Asante Corporation noted.
How the Company Intends Using Net Proceeds from the Exploration
According to the company, it intends to use the net proceeds from the offering for exploration and development of the company’s mineral properties and for general corporate working capital purposes.
The securities, it noted, have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws, and may not be offered or sold within the United States or to U.S. “Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available”.
Asante Gold Corporation is a gold exploration, development and operating company with a high-quality portfolio of projects and mines in Ghana.
Asante is currently operating the Bibiani and Chirano Gold Mines with combined forecast production of approximately 400,000 ounces of gold for 2023.
The company continued with detailed technical studies at its Kubi Gold Project for early production. All mines and projects are located on the prolific Bibiani and Ashanti Gold Belts.
Asante is listed on the Canadian Securities Exchange, the Ghana Stock Exchange and the Frankfurt Stock Exchange.
Asante is also exploring its Keyhole, Fahiakoba and Betenase projects for new discoveries, all adjoining or along strike of major gold mines near the centre of Ghana’s Golden Triangle.
Asante Gold Corporation, meanwhile, is forecasting a combined production of approximately 400,000 ounces of gold for 2023 from its Bibiani and Chirano mines.
This should result in some US$ 771.6 million– pegged at US$1,929.02 per ounce as of January 23, 2023 world market prices.
Asante’s recent increase in gold production is a positive sign for the company’s future, particularly its focus on exploration and expanding its mining operations.
In an update to investors, Asante noted a significant increase in gold production for the months of November and December 2022, with an average monthly production increase of 20.7 percent from its Bibiani and Chirano gold mines in Ghana compared to the prior two months.
It also said the Walsh Pit, at its Bibiani Mine, continues to outperform relative to initial planned gold production. Exploration success in this area has increased planned production from the Walsh Pit to more than 100,000 ounces from 20,000 ounces- with further exploration work underway, while it continues to ramp up production at both mines. This, the company said, puts it in line to achieve the 400,000 ounces target with further exploration work underway.
In November and December 2022, gold production on a combined basis for Bibiani and Chirano totalled 47,954 ounces, a monthly average of 23,977 ounces, up 20.7 percent from the previous 39,731 ounces or a monthly average of 19,866 ounces for September and October 2022.
The November and December gold production monthly average was up 34.4 percent from the monthly average of 17,834 ounces of gold from August to October 2022, Asante’s third fiscal quarter.
This, Asante said, represents a significant achievement; as it has only recently transitioned from an early-stage exploration company to a mid-tier gold producer.
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