Asante Gold Corporation completed the acquisition of 90% stake in Chirano Gold Mines Limited from Kinross Gold Corporation (TSX:K).
Canaccord Genuity Group Inc. (TSX:CF) and Durose Asset Management Inc acted as Financial advisor to Asante Gold Corporation (CNSX:ASE), Bennett Jones LLP acted as legal advisor to Asante Gold Corporation. Treadstone Resource Partners Pty Ltd and The Bank of Nova Scotia (TSX:BNS) acted as financial advisor and Osler, Hoskin & Harcourt LLP acted as legal advisor to Kinross Gold Corporation.
Asante Gold Corporation (CNSX:ASE) completed the acquisition of 90% stake in Chirano Gold Mines Limited from Kinross Gold Corporation (TSX:K) on August 10, 2022.As on February 13, 2023 the Purchase Agreement has been amended to provide for, among other things, the repayment of the February 10, 2023 $55 million deferred consideration cash payment in four tranches as follows: (i)$10 million in cash will be paid on or before February 17, 2023 in connection with the closing of the current equity financing (ii) $10 million in cash will be paid on or before March 31, 2023; (iii) $10 million in cash will be paid on or before April 30, 2023; and (iv)$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.