Kinross Gold (TSX: T.K, Stock Forum) Tuesday said it will sell its 50% interest in the Crixás gold mine in Brazil to AngloGold Ashanti for US$220 million in cash. 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 transaction is expected to close during the second quarter of 2012.