The government has given green light for Asante Gold to acquire 90% interest of Chirano Gold’s operations in Bibiani in the Western North Region for a sum of $225 million.
Consequently, the transaction is expected to be completed on or around 31 May 2022 after the government issued a
‘letter of no objection’ regarding the change of control.
The government will continue to maintain its 10% carried interest in Chirano.
Upon closing of the transaction, Kinross Gold Corporation which owns Chirano Gold’s operations 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. K
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.
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.