GHANA – Asante Gold Corporation has entered into a US$225 million share purchase agreement with Kinross Gold Corporation to acquire Kinross’ 90% interest in the Chirano Gold Mine in Ghana.
Chirano is an operating open-pit and underground mining operation located in southwestern Ghana, immediately south of the Company’s Bibiani Gold Mine.
The upfront consideration for the acquisition will be comprised of US$115 million in cash and US$50 million in common shares of Asante based on the 30-day volume-weighted average price of the Asante Shares prior to the closing of the acquisition.
Kinross will also receive a total deferred payment of US$60 million 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.
“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,” said David Anthony, president, and CEO of Asante.
“Asante has deep ties to Ghana and is committed to sharing the benefits of its activities with the local community and Ghana.”
According to Douglas MacQuarrie, non-executive chairman of Asante, combining Bibiani and Chirano assets under one ownership will cover an entire district-scale gold trend exceeding 53 km in length.
With two modern process plants located 20 km apart, exploration success anywhere along the gold trend can be efficiently accessed.
Asante Gold’s recent exploration success at Bibiani-South Russel is indicative of the discovery potential that remains along with the trend.
The mining giant is currently focused on developing to produce its Bibiani and Kubi Gold mines located on the prolific Bibiani and Ashanti Gold Belts.
Asante has an experienced and skilled team of mine finders, builders, and operators, with extensive experience in Ghana.
The company is listed on the Canadian Securities Exchange and the Frankfurt Stock Exchange and has announced plans to co-list its shares in Ghana.
In addition, the company is also exploring its Keyhole, Fahiakoba, and Betenase projects for new discoveries, all adjoining or along strike of major gold mines near the center of Ghana’s Golden Triangle.