Asante Gold to Acquire Kinross’ Chirano Mine for $225 Million, Ghana
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Kinross Gold has entered into a sale agreement with Asante Gold Corporation to sell its 90 percent interest in the Chirano mine in Ghana for a total consideration of $225 million in cash and shares. The Ghanaian government has a 10 percent carried interest in Chirano.
Upon closing of the transaction, Kinross will receive $115 million in cash. Kinross will also receive a number of Asante common shares having a value of $50 million.Kinross will also receive a total deferred payment of $60 million in cash, with 50 percent payable on the first anniversary of closing and the other 50 percent payable on the second anniversary of closing. If the 9.9 percent share ownership limit is reached, the remainder of the $50 million will be paid by increasing the deferred cash payments in equal portions. The company has agreed that it will hold its Asante common shares for at least 12 months following the closing of the transaction.
The transaction is expected to be completed on or around May 31, 2022. The Government of Ghana has issued a “letter of no objection” regarding the change of control.
Chirano represented approximately 3 percent of Kinross’ total mineral reserve estimates as of year-end 2021. With the expected close of the transaction, Kinross will have no assets or interests in Ghana.
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile, Ghana, and Canada. Its focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth, and responsible mining.
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