A day after announcing the sale of its Russian assets, Kinross Gold (TSX: K; NYSE: KGC) has entered into an agreement with Asante Gold (OTC: ASGOF; CSE: ASE) to potentially sell the company’s 90% interest in the Chirano gold mine.
The open-pit and underground mining operation in southwestern Ghana produced 154,668 gold-equivalent oz. in 2021, compared to 166,590 in 2020 and is located immediately south of Asante Gold’s Bibiani gold mine. The government of Ghana carries a 10% interest.
“From time –to time, Kinross receives unsolicited proposals regarding its assets, including Chirano, which we will explore for the benefit of our shareholders,” Louie Diaz, Kinross Gold’s vice-president of corporate communications, told The Northern Miner. “While Kinross is in confidential discussions with Asante, there is no guarantee a deal will be reached.”
Asante Gold’s CEO Dave Anthony described the agreement as a potential gamechanger for the company. “Last year we picked up Bibiani (gold mine) which is coming online in the third quarter… and then we could bring Chirano into the mix, which could add another significant rate of production to our profile,” he told The Northern Miner over the phone.
Chirano has been on Asante’s radar for a while because of its location near the company’s assets and because Asante controls some land around it, Anthony said. “We all saw Chirano as being a fabulous asset, we have been interested in the asset for a long time.”