Canada’s Kinross Gold sells stake in Brazilian mine to AngloGold for $220 million

Canada’s third main gold miner Kinross Gold (TSX:K) is selling its stake in the Crixas gold mine (Serra Grande), in Brazil, to South Africa’s AngloGold Ashanti for $220-million.

AngloGold Ashanti already holds, through its subsidiaries, the other 50% of the project and is the operator of the mine.

Toronto-based Kinross president and chief executive, Tye Burt, said the mine was a non-core asset for the company.

"Its divestiture is consistent with our strategy of portfolio optimization and focusing our resources on the company's core operations and priority projects," Burt said in a statement.

The sale is expected to close in the second quarter of 2012 and Kinross will update production guidance for 2012 when reporting second-quarter earnings.

Earlier this month, Kinross said it expected to produce between 2.6 million and 2.8 million gold-equivalent ounces from current operations this year.

The company, which has been bludgeoned in the markets after taking a $2.5 billion writedown in February, produced 6% less gold during the first quarter of 2012 compared to the same period last year.

Shares in Kinross were up 16 cents to $8.58 after the announcement on Tuesday morning.