Kinross Gold (TSX: K) has continued on its process of divesting of certain mining assets in global jurisdictions, announcing last night that it has managed to complete the sale of the Chirano Mine in Ghana. The property was sold off to Asante Gold (CSE: ASE), whom is rapidly becoming a sizable operator in the region.
The sale of Chirano will see Kinross receive total consideration of $225 million, which is payable in both cash and shares. Upfront payments consists of $60 million in cash and $36.2 million via the issuance of just under 35 million shares. Deferred payments meanwhile are to amount to $128.8 million in cash, of which $55.0 million is to be paid in six months, and $36.9 million is payable on the one year and two year anniversaries of the sale closing.
“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,” commented CEO J Paul Rollinson.
The sale of Chirano comes after the sale of the firms Russian assets following sanctions being placed on Russia related to its invasion of Ukraine. The company only managed to receive $340 million for that sale due to the intervention of the Russian government, while recording a $606.1 million loss during the first quarter as a result of the transaction.
With its Ghana and Russian operations now gone, the company is expected to meet the low end of its guidance of 2.15 million gold equivalent ounces, with production to grow in 2023 and 2024.
The company now holds a 9.9% interest in Asante Gold.
Kinross Gold last traded at $4.49 on the TSX.
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