Kinross announces sale of Chirano mine in Ghana
April 25 2022 - 7:00AM
Kinross Gold Corporation (TSX:K; NYSE:KGC) (“Kinross” or the
“Company”) announced today that it has entered into a sale
agreement with Asante Gold Corporation (CSE: ASE; FSE: 1A9)
(“Asante”) to sell its 90% interest in the Chirano mine in Ghana
for a total consideration of $225 million in cash and shares. The
Ghanaian government has a 10% carried interest in Chirano.
Upon closing of the transaction, Kinross will
receive $115 million in cash. Kinross will also receive a number of
Asante common shares having a value of $50 million based on the
30-day volume-weighted average price of Asante common shares prior
to closing, provided that the issuance of Asante common shares will
not result in Kinross exceeding a 9.9% ownership in Asante. Kinross
will also receive a total deferred payment of $60 million in cash,
with 50% payable on the first anniversary of closing and the other
50% payable on the second anniversary of closing. If the 9.9% share
ownership limit is reached, the remainder of the $50 million will
be paid by increasing the deferred cash payments in equal portions.
The Company has agreed that it will hold its Asante common shares
for at least 12 months following the closing of the
transaction.
The transaction is expected to be completed on
or around May 31, 2022. The Government of Ghana has issued a
“letter of no objection” regarding the change of control.
Chirano represented approximately 3% of Kinross’
total mineral reserve estimates as of year-end 2021. With the
expected close of the transaction, Kinross will have no assets or
interests in Ghana.
Kinross expects to update its 2022 and
three-year guidance reflecting the recently announced pending sales
of its assets in Russia and Ghana, as well as provide additional
commentary regarding the sale transactions, as part of its upcoming
Q1 2022 results disclosures.
Treadstone Resource Partners and Scotiabank are
acting as financial advisors to Kinross, with Osler, Hoskin &
Harcourt LLP acting as legal advisor, for the transaction.
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining
company with mines and projects in the United States, Brazil,
Russia, Mauritania, Chile, Ghana and Canada. Our focus is on
delivering value based on the core principles of operational
excellence, balance sheet strength, disciplined growth and
responsible mining. Kinross maintains listings on the Toronto Stock
Exchange (symbol:K) and the New York Stock Exchange
(symbol:KGC).
Media Contact Louie DiazVice-President,
Corporate Communicationsphone:
416-369-6469louie.diaz@kinross.com
Investor Relations ContactChris Lichtenheldt
Vice-President,
Investor
Relations phone:
416-365-2761 chris.lichtenheldt@kinross.com
Cautionary statements on forward-looking
information
All statements, other than statements of
historical fact, contained in this news release, including any
information as to the future financial or operating performance of
Kinross, constitute “forward-looking information” or
“forward-looking statements” within the meaning of certain
securities laws, including the provisions of the Securities Act
(Ontario) and the “safe harbor” provisions under the United States
Private Securities Litigation Reform Act of 1995 and are based on
the expectations, estimates and projections of management as of the
date of this news release, unless otherwise stated. Forward-looking
statements contained in this presentation include, without
limitation, statements with respect to the completion and timing of
the sale of its Chirano mine; estimated total cash and share
consideration from the sale of the Chirano mine; the schedule of
deferred payments over the next two years; limitations on Kinross’
ability to sell Asante common shares; and planned updates to the
Company’s 2022 and three-year guidance. Phrases or statements that
certain actions, events or results may, could, should or will be
achieved, received or taken, or will occur or result and similar
such expressions identify forward-looking statements. The words
“estimate”, or “expects” or variations of or similar such words and
phrases or statements that certain actions, events or results may,
could, should or will be achieved, received or taken, or will occur
or result and similar such expressions identify forward-looking
statements. Forward-looking statements are, necessarily, based upon
a number of estimates and assumptions that, while considered
reasonable by Kinross as of the date of such statements, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. The estimates and
assumptions of Kinross contained in this news release, which may
prove to be incorrect, include, but are not limited to: (i) that
the parties will complete the acquisition and receive the
consideration payable in accordance with, and on the timeline
contemplated by, the terms and conditions of the relevant
agreements, on a basis consistent with our expectations; (ii) that,
in the event any deferred payment is not paid to Kinross, it will
be able to enforce its rights under the relevant agreements in a
manner consistent with its expectations; and (iii) that Asante will
be able to successfully complete a financing to raise sufficient
gross proceeds to finance the cash portion of the purchase price.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements,
including the risk that the sale transaction will not be completed
for any reason and that the secured installment payments are
actually paid to Kinross. Forward-looking statements are provided
for the purpose of providing information about management’s
expectations and plans relating to the future. All of the
forward-looking statements made in this news release are qualified
by this cautionary statement and those made in our other filings
with the securities regulators of Canada and the United States
including, but not limited to, the cautionary statements made in
the “Risk Analysis” section of our MD&A for the year ended
December 31, 2021 and the Annual Information Form dated March 31,
2022. These factors are not intended to represent a complete list
of the factors that could affect Kinross. Kinross disclaims any
intention or obligation to update or revise any forward-looking
statements or to explain any material difference between subsequent
actual events and such forward-looking statements, except to the
extent required by applicable law.
Source: Kinross Gold Corporation
Kinross Gold (TSX:K)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kinross Gold (TSX:K)
Historical Stock Chart
From Apr 2023 to Apr 2024