Kinross Gold Signed Agreement To Sell Ghana Gold Mine

SEATTLE (Scrap Monster): Kinross Gold Corporation announced that it has entered into a sale agreement with Asante Gold Corporation towards selling its 90% stake in the Chirano gold mine in Ghana, for a total consideration of $225 million in cash and shares. The remaining 10% shares are held by the Ghanaian government.

The transaction is expected to be completed on or around May 31, 2022. It has already received a “letter of no objection” from the country’s government with regards to the change of control. Treadstone Resource Partners and Scotiabank will be the financial advisors for the transaction, whereas Osler, Hoskin & Harcourt LLP will act as legal advisor.

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As per the terms of the agreement, Kinross Gold will be paid $115 million in cash upon closing of the transaction.  Kinross will be provided common shares of Asante valued at $50 million, provided the common shares thus issued will not exceed a 9.9% ownership in Asante. Also, Kinross Gold will receive a total deferred payment of $60 million in cash. Out of this, $30 million will be payable on the first anniversary of closing and the remaining $30 million will be payable on the second anniversary.

Kinross Gold expects to update its 2022 and three-year guidance, in line with the pending sales of its Russian and Ghanaian assets, which will be disclosed along with the announcement of Q1 2022 results.