Asante Gold Closes $90M Offering to Finance Bibiani Gold Mine Takeover

August 17, 2021 04:29 PM PST

Image source: Cartela,

Asante Gold Corp. (TSX-V: ASE) closed a $74.65 million subscription receipt financing on Tuesday.

The company issued 74.65 million subscription receipts at $1 each. Upon closing the company's recently-announced US$90 million acquisition of Resolute Mining Ltd.'s Bibiani gold mine in Ghana, these 74.65 million subscription receipts will convert to 106.64 million common shares at a rate of CA$0.70 per one share of receipts. The financing was closed in an effort to finance the large-scale acquisition.

Shortly after announcing the Bibiani acquisition, Asante appointed a new operations team to fast track the mine to production within the next year. The new team includes Dave Anthony as its Chief Operating Officer, who previously served as the COO of African Barrick Gold, and Eben Swanepoel, a resident of South Africa with over 43 years of experience working with African mines.

"Bibiani is a sleeping giant – essentially unmined and on care and maintenance since Ashanti Goldfields exited the project in 2006 when gold was just US$650 per oz," Asante CEO Douglas MacQuarrie said in the acquisitions release. "Our investment strategy is to achieve near-term economic returns on this very long-life asset."

Since the acquisition announcement at the beginning of August, shares of Asante have risen more than 58 cents to close at $1.00 per share on Tuesday.

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