Asante Gold amends terms for second tranche payment for Chirano Gold Mine

Asante Gold (ASGOF) announced that it has amended the terms of a share purchase and sale agreement dated April 24, 2022, as amended, among the Company, KG Africa, an indirect subsidiary of Kinross Gold Corporation (KGC), 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, 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 $55M deferred consideration cash payment in four tranches as follows: $10M in cash will be paid on or before February 17, 2023 in connection with the closing of the current equity financing; $10M in cash will be paid on or before March 31, 2023; $10M in cash will be paid on or before April 30, 2023; and $25M 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 5M 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.