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Asante Gold Announces Amended Terms for Second Tranche Payment for Chirano Gold Mine
VANCOUVER, British Columbia, Feb. 13, 2023 (GLOBE NEWSWIRE) -- Asante Gold Corporation (CSE:ASE | GSE:ASG | FRANKFURT:1A9 | U.S.OTC:ASGOF) ("Asante" or the "Com
About this update from Asante Gold Corporation
[{"type":"text","content":" VANCOUVER, British Columbia, Feb. 13, 2023 (GLOBE NEWSWIRE) -- Asante Gold Corporation (CSE:ASE | GSE:ASG | FRANKFURT:1A9 | U.S.OTC:ASGOF) (\"Asante\" or the \"Company\") today announced that it has amended the terms of a share purchase and sale agreement dated April 24, 2022, as amended (the \"Purchase Agreement\"), among the Company, KG Africa B.V. (the \"Vendor\"), an indirect subsidiary of Kinross Gold Corporation (\"Kinross\"), and Kinross, pursuant to which, among other things, the Company acquired on August 10, 2022 all of the issued and outstanding shares in the capital of Red Back Mining Pty Ltd (now renamed Asante Chirano Australia Pty Ltd.), which indirectly holds a 90% interest in the Chirano Gold Mine. The Purchase Agreement has been amended to provide for, among other things, the repayment of the February 10, 2023 US$55 million deferred consideration cash payment in four tranches as follows: (i) US$10 million in cash will be paid on or before February 17, 2023 in connection with the closing of the current equity financing (see the company's news release dated January 23, 2023); (ii) US$10 million in cash will be paid on or before March 31, 2023; (iii) US$10 million in cash will be paid on or before April 30, 2023; and (iv) US$25 million in cash on or before May 31, 2023. The above payments will carry interest at a rate ranging from prime plus 3% to 5%. Asante has also agreed to accelerate payments of such amounts to Kinross from net proceeds of any subsequent equity or debt financing undertaken by Asante in advance of May 31, 2023. As partial consideration for amending the Purchase Agreement, the Company has agreed to issue 5.0 million common share purchase warrants of the Company, with each warrant being exercisable to acquire one common share of the Company at a price of $2.25 per share for 36 months following the date of issuance. Kinross has agreed not to exercise any warrants within six months from the date of issue. All payments pursuant to the Purchase Agreement will be accelerated by a change of control of Asante or the company group that owns Chirano Gold Mines Limited. Dave Anthony, President & CEO stated, “Kinross continues to be supportive of the long term potential of the combined Bibiani – Chirano mining complex. As a principal shareholder and creditor, we are pleased to agree with Kinross u...