Kinross cuts Asante Gold stake by nearly half

Kinross Gold (TSX: K, NYSE: KGC) has reduced its holding in Ghana-focused Asante Gold (CSE: ASE) by nearly half.

It sold 29.9 million Asante shares, about 45% of its holding, at $1.55 each for total proceeds of $46.3 million (US$33.5 million), Kinross said Monday. The tranche equals 4.2% of Asante’s outstanding share capital. The sale price is a discount over Monday’s opening price of $1.62.

Asante’s shares traded at $1.64 apiece in afternoon trading Monday in Toronto, down 4.7% for the session for a market capitalization of $823 million. Kinross traded 2.2% higher at $31.30 per share, for a market value of $38.2 billion.

Bibiani 

The Canadian gold miner did not provide a reason for the divestment, only stating that the move was “part of the ordinary course of portfolio management”.

Asante currently operates the Bibiani and Chirano gold mines in Ghana, plus several exploration projects in the West African nation. Kinross previously held the Chirano mine for over a decade, before selling it to Asante in 2022.

Kinross now holds about 36.9 million of Asante’s shares, for a 5.2% equity ownership. It also holds five million Asante share purchase warrants and a note that can be converted into Asante shares at $1.81 apiece. Taking into account these convertible securities, Kinross owns about 13% of Asante on a partially diluted basis.