Asante Gold Corporation

Canaccord Genuity Acts as Financial Advisor to Asante Gold on its US$225 Million Acquisition of the Chirano Gold Mine

*This transaction closed August 10, 2022

Canaccord Genuity is pleased to announce that on April 25, 2022, its client, Asante Gold Corporation (CSE:ASE | FRANKFURT:1A9 | U.S.OTC:ASGOF) (“Asante” or the “Company”) announced that they entered into a share purchase agreement with Kinross Gold Corporation (“Kinross”), pursuant to which Asante will acquire Kinross’ 90% interest in the Chirano Gold Mine (“Chirano”) for a total consideration of US$225 million, with the Ghanaian government retaining a 10% carried interest in Chirano (“Transaction”).

Canaccord Genuity acted as financial advisor to Asante.

Pursuant to the terms of the Transaction, upon closing, Asante will pay US$115 million in cash and US$50 million in common shares of Asante (“Asante Shares”), based on the 30-day VWAP of the Asante Shares prior to closing; provided, however, that the issuance of such Asante Shares will not result in Kinross exceeding a 9.9% ownership interest in Asante. In addition, Asante will also make a deferred cash payment totaling US$60 million (“Deferred Payment”), with 50% payable on the first anniversary of closing and the remaining 50% payable on the second anniversary of closing. In the case where the 9.9% ownership interest limit is reached, then the remainder of the US$50 million will be satisfied by increasing the Deferred Payment in equal portions. Kinross has agreed that it will hold the Asante Shares for at least 12 months following the closing of the Transaction.

Chirano is an operating open-pit and underground mining operation located in southwestern Ghana. There is significant industrial logic for Asante to acquire Chirano given its close proximity to Asante’s Bibiani Gold Mine, which provides an opportunity to materially expand Asante’s production profile, share existing infrastructure, realize operational cost synergies and maximize scalability.

Asante is a gold exploration, development and operating company with a high-quality portfolio of projects in Ghana, Africa’s largest and most reliable gold producer. Asante is currently focused on developing to production its Bibiani and Kubi Gold mines located on the prolific Bibiani and Ashanti Gold Belts. Asante has an experienced and skilled team of mine finders, builders and operators, with extensive experience in Ghana. Asante is listed on the Canadian Securities Exchange and the Frankfurt Stock Exchange and has announced plans to co-list its shares in Ghana.

Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile, Ghana and Canada. Kinross’ focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).

The Canaccord Genuity team included Tom Jakubowski, Earle McMaster, Mark Silvestre, Matt Reimer, Thomas Tran, and Tony Huang from Investment Banking.