Kinross Gold Corporation (TSX:K)(NYSE:KGC) announced today that it has entered into a purchase and sale agreement with subsidiaries of AngloGold Ashanti Ltd. (JSE:ANG)(NYSE:AU) (“AngloGold Ashanti”), pursuant to which Kinross will sell its 50% interest in the Crixás gold mine (Serra Grande), located in the State of Goiás, Brazil, to AngloGold Ashanti for gross cash proceeds of US$220 million. AngloGold Ashanti is the other 50% owner and operator of Crixás.
“Crixás 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 Crixás’ 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.