Asante Gold Corporation has entered into a share purchase agreement with Kinross Gold Corporation to acquire Kinross’ 90% interest in the Chirano Gold Mine in Ghana
The upfront consideration for the acquisition will be comprised of US$115mn in cash and US$50mn in common shares of Asante based on the 30-day volume-weighted average price of the Asante Shares prior to closing of the acquisition.
Kinross will also receive a total deferred payment of US$60mn in cash with 50% payable on the first anniversary of closing and the balance payable on the second anniversary.
The transaction is expected to be completed around 31 May. The Government of Ghana, which holds a 10% stake in the mine, has issued a letter of no objection to the change of control.
David Anthony, president and CEO of Asante, commented, “We are excited to add the Chirano operation to our base of gold production in Ghana. It presents an excellent opportunity for synergy with our other Ghanaian assets and represents the next step for our vision to build a leading gold mining company in Ghana and West Africa.
“Asante has deep ties to Ghana and is committed to sharing the benefits of its activities with the local community and Ghana.
Douglas MacQuarrie, non-executive chairman of Asante, added, “The Bibiani and Chirano assets combined under one ownership will cover an entire district scale gold trend exceeding 53 km in length. Total gold production from the mines to date exceeds 8mn ounces. With two modern process plants located 20 km apart, exploration success anywhere along the gold trend can be efficiently accessed. Our recent exploration success at Bibiani-South Russel is indicative of the discovery potential that remains along the trend.”
