Kinross concludes sale of Chirano mine to Asante Gold for $225m in cash and shares

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KINROSS Gold said it had completed the sale of its stake in Chirano, a gold mine in Ghana for $225m in cash and shares.

The buyer is Asante Gold Corporation which in August last year bought the Bibiani gold mine from Resolute Mining for $90m. Kinross will own some 9.9% of Asante Gold which it has agreed to hold for at least a year post deal closure.

Chirano represents about 3% of Kinross’ total mineral reserve estimates as of its 2021 financial year end. Kinross recently extended Chirano’s mine life three years after adding 660,000 ounces to the mine’s mineral reserves estimates before depletion.

Kinross now derives about 70% of its production from operations in the Americas after Russia’s invasion of Ukraine earlier this year caused it to sell its Russian assets. The Kupol mine and Udinsk project were sold to Highland Gold for $340m in cash in June – roughly half the originally agreed amount following a review by the recently formed Russian sub-committee on the Control of Foreign Investments.

“We are also pleased we are able to continue to participate in Chirano’s success through our shareholdings in Asante, who also owns the neighbouring Bibiani mine, which recently completed its first gold pour after restarting operations,” said J. Paul Rollinson, president and CEO of Kinross Gold.

Kinross’ non-American operation is Tasiast, a mine in Mauritania.