Canadian miner Kinross Gold is exiting Ghana with the sale of its 90% interest in the Chirano mine to junior miner Asante Gold for $225-million in cash and shares.
Asante CEO David Anthony said that Chirano was an “excellent opportunity” for the CSE-listed company in Ghana, where it already owns and operates the Bibiani and Kubi mines.
“[Chirano] presents an excellent opportunity for synergy with our other Ghanaian assets and represents ‘the next step’ for our vision to build a leading gold mining company in Ghana and West Africa,” he said.
Asante nonexecutive chairperson Douglas MacQuarrie pointed out that the Bibiani and Chirano assets would be combined under one ownership, to cover an entire district scale gold trend exceeding 53 km in length and with past gold production of more than eight-million ounces.
“With two modern process plants located 20 km apart, exploration success anywhere along the gold trend can be efficiently accessed. Our recent exploration success at Bibiani-South Russel is indicative of the discovery potential that remains along the trend.”
Chirano ore is processed at the mine’s mill, which has capacity of about 3.5-million tonnes a year.
Upon closing, Kinross would receive $115-million in cash and would also receive a number of Asante common shares valued at $50-million. The company would also receive a $60-million deferred payment.
This is Kinross’ second asset sale in as many weeks, with the company earlier this month announcing the sale of its Russian assets to Highland Gold for $680-million.
Kinross stated on Monday that it would update its 2022 and three-year guidance to reflect the pending Russia and Ghana sales as part of its upcoming first-quarter results disclosures.