UPDATE: Kinross Agrees to Sale of Crixas Interest for US$220 Million; Shares Up 1.8% in Early Trade


Shutterstock photo

Kinross Gold Corporation (K.TO) announced today that it has entered into a purchase and sale agreement with subsidiaries of AngloGold Ashanti Ltd. ( AU ) 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.

"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 announcement.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

More from MT Newswires


MT Newswires

MT Newswires

Market News, Commodities
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com