At long last, Pioneer Group Inc. has a found a buyer for its gold mining operations in Ghana.
A subsidiary of Ashanti Goldfields Co., an African-based gold mining group, agreed to pay $5 million at closing and an additional $13.8 over five years for the operations. Pioneer may also receive supplemental cash payments over the next five years, depending on gold prices and production levels.
The Boston-based mutual fund company closed the mine, which had sapped earnings, at yearend. Pioneer reported net income from continuing operations in the first quarter of $2.1 million; a year earlier the bottom line was a net loss of $2.4 million.
Pioneer itself is also for sale. Final bids were due last week.