Asante Gold arranging $100 million financing
![](https://resourceworld.com/wp-content/uploads/2022/02/asante-gold-1024x568.jpg)
Asante Gold Corp. [ASE-CSE; ASGOF-OTC; 1A9-FSE] has accepted subscriptions aggregating $101.98-million in connection with the previously announced private placement of common shares of the company at a price of $1.75 per common share. Included in the subscribers are the Ghana Minerals Income and Investment Fund (MIIF) that subscribed for 14,514,286 common shares and Emiral Resources Limited that subscribed for an additional 12,249,208 shares, maintaining its cornerstone investment in the Company.
MIIF receives mineral resource royalties from mineral production in Ghana. MIIF has been mandated by the Ghanaian government to build a world class minerals industry and to serve as a strategic lever for the economic transformation of Ghana. MIIF has reported GH1.9 billion under management.
The subscription by Emiral under the offering combined with its current shareholdings will represent at closing a 19.87% ownership stake in Asante Gold. Emiral is considered a “related party” of the company and, accordingly, its subscription constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101.
The second US$30 million payment to Resolute Mining Limited for the Bibiani Mine acquisition has been completed, with the final payment of US$30 million payable in six months. The balance of the proceeds from the offering will be used for Bibiani Mine development and working capital purposes. The company will also pay certain finders’ fees in connection with the offering. All securities issued will be subject to a four-month and one day hold period under Canadian securities legislation.
The company has granted 7,039,340 incentive stock options at $1.75 per share for two and five years to directors, consultants and employees, as well as 1,515,760 Restricted Share Units, and 4,285,900 Deferred Share Units subject to the provisions of the company’s Equity Incentive Plan.
Asante has a high-quality portfolio of projects in Ghana and is focused on developing high margin gold projects including the Bibiani and Kubi Gold mines located on the prolific Bibiani and Ashanti Gold Belts.
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.