Asante now a multi-asset company as Chirano sale closes

Vancouver-headquartered Asante Gold has transitioned into a multi-asset company with the closing of the Chirano mine, in Ghana.

The company bought Chirano from Kinross Gold for $225-million in cash and shares.

“The closing of the Chirano acquisition marks achievement of a significant milestone for Asante’s growth strategy as we work to achieve midtier status in the near term,” said Asante CEO Dave Anthony on Wednesday.

The Bibiani and Chirano assets are now combined under one ownership, to cover a district scale gold field of more than 53 km in length with past gold production of more than eight-million ounces.

“Asante welcomes the opportunity to work with our new employees and contractors at Chirano. With the continued commitment of our management, staff and stakeholders, we look forward to growing this asset to be a significant gold production district,” said Anthony.

Kinross received $60-million in cash and 34 962 584 Asante common shares having a total value of $36.2-million. Kinross 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 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 Kinross president and CEO Paul Rollinson.

“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.”