Kinross divests entire 12% stake in Yukon-focused White Gold

[Ben Graham]

Kinross Gold (TSX: K, NYSE: KGC) has divested its entire equity stake in White Gold (TSXV: WGO) with the sale of approximately 23.68 million shares, or 12% of those outstanding.

The shares were sold at a price of C$0.29 each, for total proceeds of nearly C$6.87 million.

White Gold traded at $0.38 apiece in Toronto at the time of the Kinross’ share sale announcement last Friday.

The stock has since dropped another C$0.01 to C$0.37, giving the Canadian gold junior a market capitalization of C$74.1 million.

White Gold currently holds a large portfolio of exploration projects in Yukon Territory. The projects cover approximately 3,150 sq. km or 40% of the prolific White Gold mining district.

Its flagship project, also called White Gold, hosts four deposits with a combined indicated resource of 17.7 million tonnes grading 2.12 grams per tonne gold, containing 1.2 million oz., and an inferred resource of 24.5 million tonnes grading 1.42 grams for 1.1 million oz.

In a news release late last year, White Gold CEO David D’Onofrio called it “one of the highest-grade open-pit gold resources in Canada owned by an exploration company.”

Alongside Kinross, the project has had the backing of Agnico Eagle Mines (TSX: AEM, NYSE: AEM), Canada’s largest gold producer, which has a 19.85% stake in the company.