KEY POINTS
- Asante Gold signs a $500 million forward agreement with Fujairah Holdings to enhance Bibiani mine production and fund growth projects.
- Agreement includes $100M initial deposit and discounted gold deliveries, targeting 15,000 ounces per month by mid-2025.
- Securing funding fast-tracks mining expansion and sulphide plant completion, bolstering Asante’s position in West Africa’s gold sector.
Asante Gold Corporation, a gold exploration and development company, has announced a $500 million gold purchase agreement with Fujairah Holdings LLC in a bid to accelerate production in Ghana and fund additional growth initiatives.
Executed through its subsidiary, Asante Gold Bibiani Ltd., the deal secures $100 million in revolving financing over two years to boost production at Ghana’s Bibiani Gold Mine and complete the sulphide treatment plant.
Boosting production at Bibiani
With operations across Ghana, including Bibiani and Chirano Gold Mines, Asante secured $100 million upfront from Fujairah Holdings to fund immediate project expansion. Under the agreement, Asante will deliver $100 million in refined gold quarterly at a 7 percent market discount, backed by a parent guarantee and a subordinated debenture on Bibiani’s assets to ensure secured financing.
The funding will primarily enhance the Bibiani mine’s production capacity, targeting over 15,000 ounces of gold per month by mid-2025. Proceeds will also be directed toward completing the sulphide treatment plant, a critical infrastructure component for processing higher-grade ore.
“Asante’s collaboration with Fujairah Holding marks a significant milestone in our growth trajectory,” said Dave Anthony, President and CEO of Asante Gold. “This agreement not only secures vital funding, but also strengthens our ability to achieve higher production and operational efficiency.”
Structured Gold forward deliveries and impact
The agreement is structured to deliver $100 million in refined gold starting in March 2025, following a three-month grace period. Four additional deposits of $100 million each will be advanced over 22 months, with corresponding gold deliveries in subsequent quarters.
This funding will fast-track mining activities at Bibiani, contributing to Asante’s broader goal of becoming a leading gold producer in West Africa. The Bibiani Gold Mine, situated in Ghana’s Western North Region, has a proven history of over 4.5 million ounces of gold production.
Asante Gold’s future prospects
Listed on multiple exchanges, the Gold Corporation operates in Ghana, managing Bibiani and Chirano Mines while advancing Chirano and Kubi Gold Projects in the Ashanti Belt. Backed by a skilled team and robust assets, it is committed to sustainable growth through responsible mining.
