Kinross Gold Completes Sale of Cerro Casale Interest
TORONTO, ON--(Marketwired - June 09, 2017) - Kinross Gold Corporation (TSX: K) (
The consideration for the sale includes: US$260 million in cash which was paid at closing (and which included US$20 million for Quebrada Seca); a contingent payment of US$40 million in cash, payable following a positive construction decision for Cerro Casale; Goldcorp assuming a US$20 million contingent payment obligation due to Barrick Gold Corporation under the existing Cerro Casale shareholders agreement, which is payable when commercial production at Cerro Casale commences; and a 1.25% royalty from Goldcorp based on 25% of gross revenues from all metals sold at Cerro Casale and Quebrada Seca, with Kinross foregoing the first US$10 million.
Additionally, Kinross entered into the previously announced water supply agreement with the Cerro Casale joint venture.
Kinross expects to use the proceeds from the sale for its organic development projects and to further strengthen its balance sheet.
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana. Our focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange (TSX: K) and the New York Stock Exchange (