01:16 PM EST, 12/19/2024 (MT Newswires) -- (Updates shares following lift of trading halt.)

Asante Gold ( ASGOF ) Thursday said it entered into an agreement with Fujairah Holdings LLC for the forward sale of US$500 million in gold from the Bibiani mine in Ghana which will provide US$100 million of financing to the company on a revolving basis over a period of approximately two years.

As an advance deposit toward future gold deliveries, Fujairah paid US$100 million to the company's Asante Bibiani unit. Under the Gold Forward Agreement, there is a three month grace period in respect of the Initial Deposit, following which the company will deliver US$100 million of refined gold to Fujairah from March 28, 2025 through June 28, 2025, with such deliveries to be credited against the Initial Deposit.

Following the Initial Deposit, a series of four additional advance deposits and gold deliveries will be made in an aggregate amount of US$400 million over a period of 22 months.

The proceeds of the Initial Deposit will primarily be used to advance growth initiatives at the company's operations, including accelerated ramp-up of mining activities and completion of a sulfide treatment plant at the Bibiani mine.

Asante shares were last seen up $0.03 to $1.12 on the Canadian Securities Exchange.

Price: 1.12, Change: +0.03, Percent Change: +2.75