Business
Kinross Gold announces acquisition of Bema Gold
Kinross Gold announces acquisition of Bema Gold.
About this update from Kinross Gold Corporation
[{"type":"text","content":"\n\n\n\n\nUS$3.1 billion transaction aligns with Kinross' four point strategy,\nexpands reserve base and creates shareholder value\n\nTORONTO and VANCOUVER, Nov. 6 /CNW/ - Kinross Gold Corporation\n(\"Kinross\") (TSX: K, NYSE: KGC) and Bema Gold Corporation (\"Bema\")\n(TSX/NYSE: BGO, AIM: BAU) are pleased to announce that their Boards of\nDirectors have unanimously approved Kinross' acquisition of Bema in a US$3.1\nbillion transaction to create a US$7.9 billion major gold producer.\n\nHighlights\n\nBema shareholders will vote at a meeting, expected to be held in\nmid-January 2007, to approve the acquisition. Upon successful completion of\nthe transaction, on a pro forma basis Kinross will have the following\nattributes:\n\n>\n\n\"This acquisition will create exceptional value for shareholders,\" said\nTye W. Burt, President and Chief Executive Officer of Kinross. \"By combining\nour assets, operations and expertise, we have dramatically increased our gold\nreserve and resource base to more than 50 million ounces. We will have a\nwell-balanced gold reserve profile with 39 per cent in Chile, 37 per cent in\nBrazil, 16 per cent in North America and 8 per cent in Russia. These reserves,\ncoupled with our enhanced exploration pipeline, will put Kinross in a unique\nposition to take advantage of the robust gold price and provide investors with\nan excellent portfolio of world-class assets.\"\n\"The Bema Board of Directors unanimously approved this transaction and an\nindependent advisor has provided an opinion that the transaction consideration\nto be received by Bema shareholders is fair from a financial point of view. We\nbelieve that our companies are a great fit due to complementary strengths,\ngeographic synergies and similar growth profiles,\" said Clive T. Johnson,\nChairman, President and Chief Executive Officer of Bema. \"Bema shareholders\nare getting an attractive premium to become part of a stronger company that\nwill create near- and long-term value for all shareholders. Further, we expect\nthat the combined Company will be re-rated in the market once the transaction\nis complete.\"\nThis acquisition of Bema consolidates Kinross' ownership of Refugio and\nincreases its reserves in Chile and Russia. District exploration and operating\nsynergies will be realized by substantially increasing Kinross' position in\nthe Maricun...