Kinross Gold Corporation (K.TO) announced today that it has
entered into a purchase and sale agreement with subsidiaries of
AngloGold Ashanti Ltd. (
) that will see Kinross sell its 50% interest in the Crixas gold
mine (Serra Grande), located in the State of Goias, Brazil, to
AngloGold Ashanti for gross cash proceeds of US$220 million.
AngloGold Ashanti is the other 50% owner and operator of
"Crixas is a non-operated, non-core asset for Kinross," said Tye
Burt, President and Chief Executive Officer of Kinross. "Its
divestiture is consistent with our strategy of portfolio
optimization, and focusing our resources on the Company's core
operations and priority projects."
Kinross' share of Crixas' proven and probable gold reserves was
approximately 375,000 ounces as of December 31, 2011, and its share
of forecast production for 2012 was approximately 70,000 gold
equivalent ounces. The company expects to provide updated
production guidance for 2012 with its second quarter earnings
The completion of the transaction is subject to the receipt of
certain required regulatory approvals and other customary
conditions of closing. The transaction is expected to be completed
during the second quarter of 2012.
More than 326,000 shares have changed hands.
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