Aviva announces Kenyan assets sale

Aviva Corporation says it is shifting its focus to its coal projects in Botswana after offloading its Kenyan gold and base metals assets to international miner Barrick Gold for $20 million.

Perth-based Aviva announced today that Barrick’s African subsidiary would acquire all the shares in Aviva Mining Kenya, for an initial payment of $20 million, with a further payment of $10 million due if a gold resource in excess of 3 million ounces is declared over the project areas.

The transaction remains subject to Aviva shareholder and Kenyan regulatory approval.

Aviva chief executive Lindsay Reed said the transaction would ensure the company had a strong balance sheet to pursue other growth opportunities.

“The company is actively reviewing its strategic growth options in relation to its coal-based projects in Botswana,” Mr Reed said in a statement.

“We believe this is a very good deal for shareholders, Aviva has spent approximately $8 million on its Kenyan project and looks set to generate a substantial return on its investment in less than two years.”

Aviva Corporation stocks have jumped on the ASX this morning, up 11.7 per cent, or 1 cent, at 9.5 cents.