Asante Gold Secures C$193M War Chest to Boost Ghana Mine Output

VANCOUVER, British Columbia – January 06, 2026 – Asante Gold Corporation has significantly fortified its financial standing, successfully closing a major capital raise poised to accelerate the development of its key gold mining operations in Ghana. The company announced today the closing of a C$179.4 million "bought deal" private placement, a move complemented by an expanded debt facility and a substantial planned investment from its own Executive Chairman.

The total infusion of capital, comprising over C$193 million in equity financing and an additional US$30 million in debt, provides Asante with a powerful war chest. The company has stated the net proceeds are earmarked for "continued development and growth expenditures at the Bibiani and Chirano mines, and for general working capital purposes," signaling a clear strategy to deploy the funds directly into its production assets.

This series of transactions underscores strong investor confidence in Asante's growth strategy within West Africa's most prolific gold-producing nation. On the Toronto Stock Exchange Venture board, the company's shares (TSX-V: ASE) reacted positively to the news, climbing 4% to C$1.74 in trading today.

A Multi-Pronged Financial Strategy

The capital raise was executed through a sophisticated, multi-layered approach. The cornerstone is the C$179.4 million brokered private placement, which saw the issuance of 112,125,000 common shares at a price of C$1.60 per share. The offering, which included the full exercise of the underwriters' option, was led by BMO Capital Markets, with participation from National Bank Financial Inc. and Clarus Securities Inc., lending significant institutional credibility to the transaction.

In a concurrent move, Asante announced it had closed an accordion feature on its existing senior term loan, increasing total lender commitments by US$30 million to an aggregate of US$150 million. This additional debt financing was provided by GCB Bank Plc, a major Ghanaian financial institution, highlighting strong local backing for the company's in-country operations.

This blended financing structure appears to be a strategic response to capital constraints noted in financial reports from mid-2025. While Asante reported a 15% year-over-year revenue increase to $111 million for the quarter ending October 31, 2025, it also faced rising All-In Sustaining Costs (AISC). This new funding directly addresses the need for capital to implement efficiency-driving projects and unlock the full potential of its assets, strengthening the balance sheet for a period of aggressive growth.

Fueling the Bibiani and Chirano Growth Engines

The fresh capital is set to be deployed into specific, high-impact projects at Asante’s two operating mines, Bibiani and Chirano, which are central to its ambitious five-year plan. The company aims to transform these assets to achieve higher production volumes and significantly lower costs.

At the Bibiani Gold Mine, a critical project is the new Sulphide Treatment Plant. This facility is designed to boost gold recovery from sulphide ore from roughly 70% to over 92%. The successful commissioning and optimization of this plant are expected to be transformative, directly leading to higher gold output and a more favorable cost profile. Furthermore, the funds will support the development of a new underground mine at Bibiani, a project underpinned by a January 2025 Definitive Feasibility Study. This underground expansion is projected to add nearly 800,000 ounces of gold production over a seven-year mine life at a highly competitive AISC of $1,035 per ounce.

At the Chirano Gold Mine, the strategy focuses on extending its operational life beyond 2029. This involves a comprehensive equipment rebuild and replacement program for the underground fleet to enhance productivity and reduce mining costs. The capital will enable resource-to-reserve conversion and the development of deeper underground sections of the mine.

The collective impact of these initiatives is substantial. Asante is holding to its forecast of increasing consolidated annual production by over 70% to approximately 450,000 ounces in 2026, with a target of exceeding 500,000 ounces by 2028. Critically, the company projects its AISC will fall dramatically as these investments bear fruit, dropping to below $1,400 per ounce by 2027 and potentially under $1,000 per ounce by 2028, placing it among the industry's more efficient producers.

An Executive's C$13.8 Million Vote of Confidence

Perhaps the most compelling signal of internal belief in the company’s strategy comes from its own leadership. Alongside the brokered placement, Asante announced a planned C$13.8 million non-brokered private placement from its Executive Chairman, Malik Easah. This transaction will see Mr. Easah purchase 8,625,000 shares at the same C$1.60 price as institutional investors.

This significant personal investment is more than a token gesture; it represents a substantial financial commitment and a powerful alignment of the chairman's interests with those of all shareholders. Such a move is often interpreted by the market as the ultimate insider endorsement of a company's future prospects. This action is consistent with a broader pattern of insider buying at Asante over the past year, during which company insiders have acquired over 42 million shares, according to market data.

The company noted that insiders also participated in the main brokered offering, treating these as "related party transactions" for which it claimed exemptions from formal valuation and minority shareholder approval requirements, citing that the value did not exceed 25% of the company's market capitalization.

Expanding Operations in a Premier Gold Jurisdiction

Asante's expansion plans are unfolding within a favorable and strategic context. Ghana remains Africa's leading gold producer, and its mining sector is a cornerstone of the national economy. The Ghanaian government has recently intensified efforts to maximize the value retained from its gold resources, notably through the establishment of the Ghana Gold Board in 2025 to oversee domestic purchasing and formalize the artisanal mining sector.

By investing heavily in established mines like Bibiani and Chirano, Asante is positioning itself as a key partner in the country's long-term resource development. The company's ability to secure substantial funding from both international capital markets and a prominent local bank demonstrates its solid standing within this critical mining jurisdiction. As Asante channels this new capital into the ground, the market will be watching closely to see if it can successfully execute its plans and deliver on its promise of becoming a premier mid-tier gold producer.