Gold miner Kinross Gold sells 90% of Ghanaian asset for $225 million
Kinross said Asante Gold will pay $115 million in cash and another $50 million in its shares. As a result, Kinross will become a shareholder of Asante with a stake of up to 9.9%. Another $60 million will be deferred consideration, half of which will be paid one year after the closing of the transaction, the other half – two years later. If the 9.9% stake is not enough to cover the $50 million, the deferred consideration will be increased.
The deal is expected to close by the end of May. Thus, Kinross will have no assets or interests in assets in Ghana.
As of 2021, production at Chirano was nearly 155,000 ounces at a cost of sales of $1,359 per ounce. The reserves are estimated at 890 thousand ounces of gold.
As you know, the government of Ghana owns the remaining 10% of Chirano.
Kinross Gold is one of the ten largest gold mining companies in the world. The company owns projects in Brazil, Chile, Ghana, Mauritania, Russia and the USA.