Business
Kinross renews acquisition agreement with Crown Resources
Kinross renews acquisition agreement with Crown Resources.
About this update from Kinross Gold Corporation
[{"type":"text","content":"\n\n\n\n\nBuckhorn will contribute to production increases\n\nAll dollar amounts are expressed in U.S. dollars, unless otherwise stated\n\nTORONTO, Feb. 27 /CNW/ - Kinross Gold Corporation (TSX-K; NYSE-KGC)\n(\"Kinross\") has agreed to extend the termination date to acquire Crown\nResources Corporation (OTCBB-CRCE) (\"Crown\") to December 31, 2006. When\ncompleted, this acquisition will allow Kinross to restart its Kettle River\nfacilities which, along with the development of Crown's Buckhorn Mountain\nproject will contribute to Kinross' growing production profile.\nKinross has signed an amendment (the \"Amendment\") with Crown to extend\nthe termination date of the definitive acquisition agreement (the \"Agreement\")\nto December 31, 2006 and adjust the price that Kinross will pay to acquire\nCrown and its 100 per cent-owned Buckhorn Mountain gold deposit located in\nnorth central Washington State, USA, just 67 kilometres from the Company's\nKettle River mine.\nUnder the terms of the Amendment, shareholders of Crown will receive\n0.32 shares of Kinross for each share of Crown, a decrease of 0.02 over the\nprevious exchange ratio of 0.34, although the valuation collar has been\nremoved. Assuming all of the outstanding Crown warrants and options are\nconverted, a total of approximately 14.7 million common shares of Kinross will\nbe issued upon the completion of the transaction.\n\"The acquisition of Crown and its Buckhorn Mountain deposit is an\nexcellent fit with our growth plan,\" said Tye Burt, President and Chief\nExecutive Officer of Kinross Gold Corporation. \"Buckhorn's reserves will\nrepresent an important addition to our portfolio. Our existing Kettle River\nfacilities and experience in the region will allow us to move forward as an\nimportant contributor in the area.\"\nKinross has also agreed to loan Crown $2 million if the transaction is\nnot closed by July 1, 2006. The $2 million would be used to buy out the only\nexisting net smelter return royalty from a third party covering the ore body\nat the Buckhorn Mountain property. The loan will have a three-year term and\nbear interest at the published (Wall Street Journal) prime rate at the time of\nborrowing, plus 3 per cent.\n\nProduction Growth Outlook\n\nAssuming the completion of this transaction, Kinross has also released\nforecast production numbers for the years 2...