Kinross offloads Ghana gold mine

Kinross Gold has agreed to sell its 90% interest in the Chirano mine to junior miner Asante Gold for $225-million in cash and shares.
It said the Ghanaian government, which has a 10% carried interest in Chirano, has issued a letter of no objection regarding the change of control.
The transaction is expected to be completed end of next month.
The Canadian firm said upon closing the transaction, it will receive $115 million in cash.
Kinross will also receive several Asante common shares having a value of $50 million based on the 30-day volume-weighted average price of Asante common shares before closing, provided that the issuance of Asante common shares will not result in Kinross exceeding a 9.9% ownership in Asante.
It 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.
Kinross said it has agreed that it will hold its Asante common shares for at least 12 months following the closing of the transaction.

Mathew Nyaungwa, Editor in Chief of the African Bureau, in Zimbabwe, Rough&Polished