Kinross completes Aurelian Resources and Fruta del Norte divestment
TORONTO (miningweekly.com) – TSX- and NYSE-listed Kinross Gold on Wednesday said it had completed the divestment of all of its interest in Aurelian Resources and the Fruta del Norte project, in Ecuador, to Fortress Minerals, a member of the Lundin Group of Companies, for $240-million.
Payment consisted of $150-million in cash and $90-million in Fortress common shares.
"We believe this is a win-win transaction for both Kinross shareholders and the future of the Fruta del Norte project. The sale further strengthens Kinross' balance sheet as the company focuses on its strategic priorities.
“At the same time, Kinross' equity position in Fortress could provide it with an opportunity to benefit from the project's development,” Kinross CEO Paul Rollinson said.
Kinross received about 26.12-million Fortress shares, issued at a price of C$4 apiece, resulting in Kinross owning about 25.8% of Fortress' outstanding common shares. The sale was subject to various conditions, including the granting of certain approvals by the government of Ecuador, which had all been provided.
Kinross last year booked a $720-million charge related to the discontinued FDN. Kinross shelved the project after it and the Ecuador government could not agree on a 70% windfall tax.
Discovered in 2006, FDN is one of the largest and highest-grade, undeveloped gold projects in the world with an indicated resource of about 23.5-million tonnes at an average grade of 9.59 g/t gold, containing 7.26-million ounces of gold. The project's inferred resource is about 14.5-million tonnes at an average grade of 5.46 g/t gold, containing 2.55-million ounces with additional significant resource upside potential.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...
VISIT SHOWROOM
ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
