Kinross Gold will receive a total consideration of $225m in cash and shares for the divestment
Last year, Chirano’s gold equivalent production was 154,668 oz on a 100% basis. Credit: Chris Wiedenhoff from Pixabay.
Asante Gold has completed a deal that involved acquiring Kinross Gold’s 90% stake in Chirano mine, Ghana.
The deal closed nearly four months after Kinross Gold entered into a sale agreement to divest its stake in the gold mine.
As earlier agreed, Kinross Gold will receive a total consideration of $225m in cash and shares for the divestment.
Kinross has already received $60m in cash and more than 34.9 million Asante common shares with a total value of $36.2m.
It will receive $55m after six months from closing, and $73.8m in two equal instalments at first- and second-year anniversaries, respectively.
Additionally, Kinross agreed to hold its Asante Shares for a minimum of 12 months following the close of the transaction.
The Ghanaian government will continue to hold the remaining 10% stake in Chirano mine.
Kinross president and CEO J. Paul Rollinson said: “With the completion of the sale of Chirano, we are focused on generating value from our rebalanced portfolio, with approximately 70% of our production in 2022 expected from our mines in the Americas.”
Chirano is located in southwestern Ghana and comprises open-pit and underground mining operations.
Last year, the mine’s gold equivalent production was 154,668 oz on a 100% basis.
With the deal now complete, Chirano and its neighbouring Bibiani asset come under one ownership covering a district scale gold field of more than 53km in length.
Asante Gold president and CEO Dave Anthony said: “The closing of the Chirano Acquisition marks achievement of a significant milestone for Asante’s growth strategy as we work to achieve mid-tier status in the near term.
“With this acquisition, we have transitioned into a multi-asset company and we are well positioned to leverage these assets to achieve long term benefits for our stakeholders.”