Asante Gold Corporation has announced that its subsidiary, Asante Gold Bibiani Limited, has entered into a forward sale agreement with Fujairah Holdings LLC.
The agreement outlines the forward sale of $500 million in gold, providing the company with a revolving financing facility of $100 million over two years. This financing deal comes as a significant boost for Asante Gold Corporation, enabling it to expedite its mining activities and fund critical infrastructure projects at its Bibiani mine in Ghana.
Dave Anthony, President and Chief Executive Officer of Asante Gold Corporation, hailed the agreement as a pivotal step in the company’s growth strategy.
“We are pleased to announce this Gold Forward Agreement with Fujairah, a strategic and foundational partner for Asante.
“This Agreement will enable us to immediately accelerate the ramp-up of mining activities and completion of the sulphide treatment plant.”
Dave Anthony, President and Chief Executive Officer of Asante Gold Corporation
Under the terms of the agreement, Fujairah Holdings LLC has already advanced an initial deposit of $100 million to Asante Gold Bibiani Limited.
This payment is part of a larger forward sale arrangement in which Asante will deliver $500 million worth of refined gold to Fujairah over the course of 22 months.
The agreement allows for a three-month grace period following the initial deposit. Starting March 28, 2025, Asante will begin delivering refined gold to Fujairah, with deliveries continuing until June 28, 2025.
Subsequent advance deposits of $100 million each will follow, accompanied by corresponding gold deliveries over a four-month period. These deliveries will be priced at a seven percent discount to the prevailing market price of gold, offering Fujairah a significant financial incentive.
The $100 million revolving facility provides Asante with the flexibility to fund its ambitious expansion plans while maintaining operational efficiency. The Bibiani mine, acquired by Asante in 2021, is a cornerstone of the company’s portfolio and a critical driver of its future production growth.
Ramp-Up of Mining Operations at Bibiani
The Bibiani mine is one of Ghana’s most significant gold assets, with an annual production capacity projected to surpass 200,000 ounces. The forward sale agreement aligns with Asante’s broader objective of ramping up production at the mine.
“We plan to increase gold production beyond 15,000 ounces per month at Bibiani by mid-year, while we work to complete our other funding initiatives,” Anthony remarked.
The proceeds from the initial deposit will be channeled into several growth initiatives, including the accelerated ramp-up of mining activities and the construction of the sulphide treatment plant, which is critical to unlocking the full potential of the Bibiani resource base.
The agreement marks a significant milestone for Asante Gold Corporation, as it not only secures much-needed funding but also strengthens its relationship with a strategic partner.
The pricing mechanism, which offers Fujairah a seven percent discount on gold deliveries, underscores the mutually beneficial nature of the partnership.
The financing arrangement also signals investor confidence in the Bibiani mine’s long-term viability.
By leveraging forward sales, Asante is tapping into future production to unlock immediate value, a strategy that reflects the company’s commitment to driving shareholder value and operational excellence.
Asante’s Bibiani mine is situated in Ghana, a country that has consistently ranked among the world’s top gold producers. With rich gold reserves and a stable regulatory environment, Ghana remains an attractive destination for mining investment.
The forward sale agreement underscores the potential of the Bibiani mine to contribute significantly to Ghana’s gold output, further solidifying the country’s position as a leading player in the global gold market.
Asante’s commitment to operational excellence and strategic partnerships continues to reinforce its status as a rising star in the global gold mining industry.
The forward sale arrangement not only provides immediate financial support but also lays the foundation for sustained growth, ensuring the company’s long-term success in an increasingly competitive market.
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