Kinross Gold (K) has signed a deal to sell its 90% stake in the Chirano gold mine in Ghana to
Asante Gold (ASE) for $225 million U.S. in cash and stock.
Kinross will receive $115 million U.S. in cash and $50 million U.S. in Asante shares.
Kinross will also receive a total deferred payment of $60 million U.S. in cash, with half payable
on the first anniversary of closing and the other half payable on the second anniversary.
The sale will leave Kinross, a Canadian gold miner, with no assets or interests in Ghana.
Kinross says the government of Ghana, which has a 10% carried interest in the mine, has
approved the change of control at the Chirano mine.
Kinross estimated that the Chirano mine represented about 3% of its total mineral reserves at
the end of last year.
The sale to Asante Gold is expected to close by May 31 of this year. Kinross Gold’s stock is
down 6% year to date at $6.75 per share.
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