Gold mining firm, Asante Gold Corporation has announced a forward gold purchase programme worth $140m.

This programme is at an interest rate of 7.53%. In a statement issued on July 15, 2022, Asante Gold announced that it has already completed the first tranche of the programme earning some $100m from the total $140m.

The $100m tranche, Asante Gold asserts, is from some strategic financial institutions in Ghana.

According to Asante Gold, repayment terms are to be 25% of the principal and interest in four equal installments of $26.88 million, with the final payment due July 12, 2023.

Settlement will be in US funds by delivery of gold at the financial institutions’ designated gold refinery in Switzerland and sold at a spot market price less 7%.

The annual interest rate of this gold forward facility is 7.53%. The Company assumes no derivative risks from the transaction as the loan principal is denominated in US funds and repayments from gold deliveries will be made in US funds, thereby providing a natural currency hedge.

Through this facility Asante Gold obtains an immediate and non-dilutive financing, repayable from gold production.

The Bibiani Mine has completed its commissioning, with the first gold pour announced on July 7, 2022.

The Company is also in advanced discussions on additional senior secured debt facilities to provide for ongoing sustaining capital.

Asante is a gold exploration, development and operating company with a high-quality portfolio of projects in ghana

It is currently operating the Bibiani Gold Mine with forecast production of 175,000oz of gold over the next 12 months. And is completing the acquisition of the Chirano Gold Mine from Kinross Gold Corporation.

Credit: gbcghanaonline