- Write by:
-
Tuesday, April 26, 2022 - 13:05:26
-
577 Visit
-
Print
Mining News Pro - Kinross Gold is selling its 90% interest in the Chirano mine in Ghana to fellow Canadian Asante Gold in a cash and shares deal worth $225 million.
The open-pit and underground mining operation in southwestern Ghana produced 154,668 gold-equivalent ounces in 2021, compared to 166,590 in 2020 and is located immediately south of Asante Gold’s Bibiani gold mine. The government of Ghana holds a 10% interest.
The Toronto-based company will receive $115 million in cash and Asante common shares with a value of $50 million based on the 30-day average price of the buying company prior to closing.
Kinross will also receive a total deferred payment of $60 million in cash, with 50% payable on the first anniversary of closing and the other 50% payable on the second anniversary of closing.
Chirano represented nearly 3% of Kinross’ total mineral reserve estimates as of year-end 2021 and with its sale, the company will no longer have assets or interests in Ghana.
“[The mine] is a relatively small, short-life mine in an operating jurisdiction with no synergies other Kinross assets, ” BMO Metals and Mining analyst Jackie Przybylowski wrote on Monday. “Even correcting for what is potentially a low mined grade in our forecasts, we believe the sale price is a fair value.”
The deal, expected to close around the end of May, follows Kinross’ sale earlier this month of all its Russian assets to Highland Gold Mining.
Before the invasion of Ukraine, Kinross had forecast that about 13% of its global production would come from Russia, where it operated for 25 years.
Asante, which acquired Bibiani from Australia’s Resolute Mining (ASX, LON: RSG) last year, began production at the asset in February.
Short Link:
https://www.miningnews.ir/En/News/621137
Barrick Gold faced criticism outside its annual general meeting on Tuesday in Toronto for supporting Malian rulers with ...
Gold wavered as traders looked ahead to a week with a Federal Reserve rate decision meeting and key US jobs data.
Newmont Corp beat Wall Street estimates for first-quarter profit on Thursday, as the world’s largest gold miner ...
China’s Zhaojin Mining Industry said on Wednesday that its A$733 million ($477.8 million) offer to buy Australia’s ...
Toronto-listed miner OceanaGold Corp said on Wednesday it will raise 6.08 billion pesos ($106 million) through an ...
Ghana Mine Workers Union is demanding the termination of the mining lease of Future Global Resources Ltd. because the ...
Gold’s record-setting rally this year has puzzled market watchers as bullion has roared higher despite headwinds that ...
AbraSilver Resource said on Monday it has received investments from both Kinross Gold and Central Puerto, Argentina’s ...
Gold took a tumble as haven demand waned after geopolitical tensions eased in the Middle East.
No comments have been posted yet ...