Asante Gold has received an unsolicited expression of interest (EOI) from Fujairah Holding, which currently holds 11.43% of the Canadian miner’s outstanding shares.

Fujairah is now interested in buying the remaining issued and outstanding common shares at C$2.20 ($1.63) apiece in cash.

The offer is non-binding and “highly conditional”.

Fujairah’s EOI requires Asante to stop current talks with other entities regarding debt or equity funding.

Asante’s board called this condition “unacceptable”, stating this would halt the company’s search for alternative options to fulfil its financing needs.

Among the other conditions are due diligence during an exclusivity period that is said to be lengthy, negotiation of a definitive deal, and regulatory and shareholder clearances.  

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By GlobalData

After carrying out discussions with its legal and financial advisers on the matter, Asanti’s board conceded that the offer is not in the best interests of the company or its shareholders.

The board also said that the proposal will be unable to address Asanti’s near-term funding needs.

In addition, the company said it has no indication whether Fujairah plans to make another offer or otherwise attempt to acquire the company’s shares.

In a statement, Asante said: “The company does not undertake any obligation to provide any updates with respect to the non-binding expression of interest or any other proposals, except as required under applicable law.”

Gold exploration and development company Asante currently operates the Bibiani and Chirano Gold Mines in Ghana, which are projected to collectively produce around 400,000oz of gold this year.

Asante purchased the Bibiani mine in 2021 for $90m from Australia’s Resolute Mining.

Last year, the company acquired Kinross Gold’s 90% stake in the Chirano mine for $225m.