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Mining News August 12, 2022 04:30:12 PM

Kinross Gold Corporation Concluded Chirano Gold Mine Sale

Paul Ploumis
ScrapMonster Author
The deferred payments are being secured by guarantees and pledges of downstream entities that own the Chirano mine.

Kinross Gold Corporation Concluded Chirano Gold Mine Sale

SEATTLE (Scrap Monster): Kinross Gold Corporation announced that it has completed the sale of all of its interest in the Chirano, Ghana mine to Asante Gold Corporation. The transaction is for a total consideration of $225 million in cash and shares.

Further to the transaction, Kinross received $60 million in cash and 34,962,584 common shares of Asante. The total value of these shares based on the volume-weighted average price for the 30 trading days ending August 9, 2022 amounts to approximately $36.2 million. The company has agreed to hold its Asante shares for a period of at least one year following the closing of the transaction.

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Also, Kinross will receive a total deferred payment of $128.8 million in cash, with $55 million payable after six months from the closing and $36.9 million each on first and second year of the closing of transaction. The deferred payments are being secured by guarantees and pledges of downstream entities that own the Chirano mine.

J. Paul Rollinson, President and CEO, Kinross noted that the company is now focused on generating value from its rebalanced portfolio, with approximately 70% of its production during the current year expected from the Americas mines. Also, he thanked all of its employees at Chirano for their hard work and contributions to the company.

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