Kinross completes sale of Chirano mine in Ghana
Kinross completes sale of Chirano mine in Ghana
(All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)
TORONTO, Aug. 10, 2022 -- Kinross Gold Corporation (TSX:K; NYSE:KGC) (“Kinross” and the “Company”) announced today
that it has completed the sale of all its interest in the Chirano mine in Ghana to Asante Gold Corporation (CSE: ASE; FSE:
1A9; GSE:ASG) (“Asante”) for a total consideration of $225 million in cash and shares.
“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,” said J. Paul Rollinson, Kinross
President and CEO. “We would like to thank our employees at Chirano for their hard work and contributions to the Company.
The team at Chirano exemplifies our commitments to safety, environmental stewardship and generating benefits for local
communities. 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.”
Kinross received $60 million in cash and 34,962,584 Asante common shares (“Asante Shares”) having a total value of $36.2
million based on an Asante Share price of $1.04 (CAD$1.34) per share, which is the volume-weighted average price of each
Asante Share for the 30 trading days ending August 9, 2022. The Company has agreed that it will hold its Asante Shares,
which represent 9.9% of ownership in Asante, for at least 12 months following the close of the transaction.
Kinross will also receive a total deferred payment of $128.8 million in cash, with $55 million payable on the six-month
anniversary of closing, and $36.9 million payable on each of the one-year and two-year anniversaries of closing. While the
transaction payment terms were amended from the previous announcement on April 25, 2022, the total purchase price of $225
million remains the same. The deferred payments are being secured by guarantees and pledges of downstream entities that
own the Chirano mine.
About Kinross Gold Corporation
Kinross is a Canadian-based global senior gold mining company with operations and projects in the United States, Brazil,
Mauritania, Chile and Canada. Our focus on delivering value is based on our core principles of responsible mining, operational
excellence, disciplined growth and balance sheet strength. Kinross maintains listings on the Toronto Stock Exchange
(symbol:K) and the New York Stock Exchange (symbol:KGC).
Media Contact
Louie Diaz
Vice-President, Corporate Communications
phone: 416-369-6469
Investor Relations Contact
Chris Lichtenheldt
Vice-President, Investor Relations
phone: 416-365-2761
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 the payment of deferred
consideration over the next two years; the geographic location of Kinross’ future gold production. 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”, “expects” or “goal” 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 deferred payments will be made on the timeline set forth in the definitive transaction
agreement, or at all; (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 the value of the Asante Shares will be
equal to or higher than their acquisition price at the end of the 12-month hold period. 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