Kinross announces sale of Cerro Casale interest

On March 28, we announced an agreement to sell our 25% interest in the Cerro Casale project in Chile, and our 100% interest in the Quebrada Seca exploration project located adjacent to Cerro Casale, to Goldcorp Inc. Read the full news release here.

“The sale of these non-core assets will further strengthen our balance sheet and give us more financial flexibility for our numerous organic development projects in each of our operating regions,” said J. Paul Rollinson, President & CEO.

Terms of the sale include $260 million in cash, other contingent cash considerations, and a royalty for metals sold at Cerro Casale and Quebrada Seca. On closing, Kinross will also enter into a water supply agreement with the Cerro Casale joint venture. After certain conditions are met, the agreement will provide Kinross with certain rights to access, up to a fixed amount, water not required by the Cerro Casale joint venture.

The water supply agreement could give Kinross more flexibility and options regarding its remaining Chilean assets, which continue to have a lot of potential.