Kinross Gold Corp To Sell Its Gold Mine In Ghana 2022 to Asante Gold Corp

Kinross Gold Corporation, a Toronto-based gold mining company, has announced that it will be selling its gold mine in Ghana to Asante Gold Corporation for US$225 million. This move signals Kinross Gold’s exit from the Ghanaian market.

Kinross Gold Corp. K-T plans to sell its Ghana gold mine in West Africa, as it further attempts to rid itself of problem assets and reposition itself as a less risky investment.

Toronto-based Kinross, Canada’s second biggest gold miner by production, said on Monday that it plans to sell its 90-per-cent stake in the Chirano mine for US$225-million to Asante Gold Corp., a Vancouver-based junior. The Ghana government, which owns the remaining stake in the mine, said it has no objections to the deal.

Kinross will receive US$50-million in shares of Asante before closing, US$115-million in cash when the deal closes late next month, and the balance in deferred cash payments over the following two years.

Chirano is one of the company’s smallest operations, producing 155,000 ounces of gold last year, compared to Kinross’s overall output of just over two million ounces. Kinross acquired the mine more than a decade ago after its acquisition of Red Back Mining.

West Africa has been a tough jurisdiction for Kinross. Earlier this year, a contractor’s truck carrying mining explosives enroute to Chirano was involved in a massive accident that resulted in the deaths of at least 17 people. Tasiast, a huge mine Kinross operates in Mauritania, has struggled to meet expectations over the years. Last year, a mill fire at Tasiast severely curtailed production.

Kinross is in the midst of a fundamental reshaping and trimming of its mine portfolio, some of which it orchestrated, and some of which has been forced upon it.

After the Ukrainian invasion earlier this year, scores of Western companies announced plans to exit Russia. Earlier this month, Kinross announced plans to sell its Siberian gold mines to Russia’s Highland Gold Mining Ltd. for US$680-million. The sale price is at a significant discount and subject to the approval of the Russian government.

By and large, investors have welcomed Kinross’s plans to exit Russia. Even though the Kupol mine has been a high margin and high output operation, investors have long been concerned about the political risk of Russia.

In an attempt to diversify its exposure away from risky jurisdictions, Kinross recently acquired Canadian gold development firm Great Bear Resources Ltd. Kinross emerged the victor in a brisk bidding war for Great Bear that saw it go head to head with four other major mining companies, including Barrick Gold Corp. A few years ago, Great Bear made a promising gold discovery in Red Lake, Ont., and had been one of the top performing junior gold stocks in the world. The $1.8-billion Kinross paid for Great Bear is one of the highest on record for a development company with no proven gold reserves.

Shares in Kinross were down about 2 per cent in early trading on the Toronto Stock Exchange.

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