Deals in brief

Kinross to acquire 70% stake in Alaska’s Peak Gold project

Canadian mining firm Kinross Gold has announced that it will acquire a 70% interest in the Peak Gold project in Alaska.

The Peak Gold project, which is a high-grade deposit, is expected to start production in 2024 and is described as a “low-cost, open-pit” mine.

It is located about 400km south-east of the Canadian firm’s Fort Knox mine.

Peak Gold is currently owned by Royal Gold subsidiary Royal Alaska (40%) and Contango subsidiary Core Alaska (60%).

The deal is valued at a total consideration of $93.7m.

Kinross will purchase 40% of the project by acquiring Royal Alaska for a total cash consideration of $49.2m and will buy 30% project stake from Core Alaska for $44.5m.

The company intends to blend the Peak Gold ore with the lower grade ore at Fort Knox to reduce its average life-of-mine (LoM) all-in sustaining costs by about $70 per gold-equivalent ounce.

Kinross Gold president and CEO Paul Rollinson said: “The relatively high-grade, low-cost Peak Gold project is an excellent addition to our portfolio, as it allows us to leverage our existing mill and infrastructure at Fort Knox and strengthens our medium-term production and cash flow profile.

“In today’s gold price environment, Peak Gold is an attractive, high-margin project that is expected to generate robust returns. The project is also expected to add to our strong record of socio-economic contributions to our host communities in Alaska, one of the top mining jurisdictions in the world.”

In June this year, Kinross Gold signed an agreement with the Government of Mauritania, which according to the company will enhance the partnership of both the parties involved in the Tasiast gold mine.

In May, Kinross Gold reported that its net earnings almost doubled to $122.7m for Q1 this year, compared with net earnings of $64.7m during the same period last year.

Jervois Mining to acquire cobalt and nickel refinery in Brazil

Australia-based exploration company Jervois Mining has agreed to acquire a nickel and cobalt refinery in Brazil from Companhia Brasileira de Alumínio.

Companhia Brasileira de Alumínio is a fully-owned subsidiary of Votorantim.

Newmont agrees to sell 11 royalties to Maverix for $90m

US gold and copper producer Newmont has signed a definitive agreement to sell a portfolio of 11 pre-production royalties to precious metals royalty and streaming company Maverix Metals.

Valued at a total consideration of $90m, the deal includes one mine under construction, four projects in development and a further six exploration assets.

AngloGold receives approval to sell South African assets to Harmony Gold

Global mining firm AngloGold Ashanti has announced that the South African Government had given its ‘unconditional’ approval for the sale of its South African assets to exploration and mining firm Harmony Gold.

In February, AngloGold Ashanti signed an agreement to sell its remaining producing assets and related liabilities in South Africa to Harmony Gold for $300m.

Caledonia Mining secures $13m for Zimbabwe solar plant

Canada-headquartered gold producer Caledonia Mining has raised $13m via the sale and issue of 597,963 shares in the company. The proceeds from the sale will be used to invest in the construction of a solar power plant to supply electricity to Caledonia’s primary asset, the Blanket mine in Zimbabwe.

US DoE selects Albemarle to partner on lithium research projects

US company Albemarle has been selected by the US Department of Energy (DoE) as a ‘critical partner’ for two lithium research projects.

The partnership will continue for three years through a Battery Manufacturing Lab Call.

Hummingbird completes Kouroussa gold project acquisition

African gold producer, developer and explorer Hummingbird Resources has completed the acquisition of Cassidy Gold Corporation’s Kouroussa gold project in Guinea.

Situated near the town of Kouroussa in the eastern Republic of Guinea, Kouroussa is a near term development asset in the “prolific” Siguiri Basin.