Asante Gold defers $50M in capex amid strategic review

Asante Gold Corporation (TSXV: ASE | GSE: ASG | OTCQX: ASGOF) has deferred or cancelled approximately $50 million in planned 2026 capital expenditures as part of an ongoing strategic review, according to a statement released June 25, 2026.

The company said production at its Bibiani and Chirano gold mines in Ghana has remained broadly in line with Q1 2026 levels during the current quarter. A detailed operational outlook, revised guidance, and a financial update are expected by the end of July 2026.

Acting Chief Executive Officer Campbell Baird said the first three months of the review focused on stabilizing operations and restoring capital discipline. "Projects have been rationalised, and the Company is beginning to move as one," he said, adding that a late-July update would provide shareholders with a fuller picture of the company's direction.

The company conducted cost management workshops at both Bibiani and Chirano, identifying variances across mining, processing, labor, general and administrative expenses, and capital expenditures. Corrective actions include removing third-party equipment hire, renegotiating contractor agreements, and reviewing procurement and supply chain practices. A stage-gate capital governance framework is also being implemented across both operations.

At Bibiani, the company is reviewing its underground development program and assessing a phased approach beginning with a single decline in Q4 2026, replacing a previously planned three-portal design. Work is also underway to recover approximately 5,000 ounces of gold accumulated within the processing circuit, which is expected to provide a one-off production benefit in Q4 2026.

Asante said Phase 1 construction under its Bibiani Resettlement Action Plan is complete, with relocation of approximately 300 households expected to begin in early July. The company said it has invested approximately $50 million in the resettlement program to date.

Glenn Baldwin was appointed Chief Development Officer in June 2026 and is leading the capital project review. Q2 2026 production results are expected to be reported in August 2026. The company said its banking syndicate remains supportive.

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