Business
Kinross Sells Aquarius Project to St Andrew Goldfields
Kinross Sells Aquarius Project to St Andrew Goldfields.
About this update from Kinross Gold Corporation
[{"type":"text","content":"\n\n\n\n\nTORONTO, Dec. 29 /CNW/ - Kinross Gold Corporation (\"Kinross\" or the\n\"Company\") (TSX-K; NYSE-KGC) today announced that it has entered into a\ndefinitive agreement with St Andrew Goldfields (TSX-SAS) (\"St Andrew\") to\nexchange Kinross' Aquarius Project located in Timmins, Ontario for 100 million\ncommon shares of St Andrew (approximately 14% undiluted ownership stake in \nSt Andrew) plus 25 million two year warrants on St Andrew common shares with\nan exercise price of 17 cents.\nSt Andrew operates the Stock Gold Complex approximately 7 kilometers from\nthe Aquarius Project. Tye Burt, President and Chief Executive Officer of\nKinross said, \"the economics of the Aquarius Project should be enhanced by\nsynergies with St Andrew's nearby operations. As a new shareholder, we also\nsee long-term potential for St Andrew's extensive land positions in the\nTimmins camp.\"\nThe transaction is contingent on St Andrew posting satisfactory financial\nassurance bonding relating to the Aquarius Project and is expected to close in\nthe first half of 2006. As a result Kinross will record a US$40 million \nnon-cash charge to third quarter 2005 earnings in connection with the\ntransaction which includes approximately US$10 million of goodwill.\n\nAbout Kinross Gold Corporation\n\nKinross Gold is a Canadian gold mining company that was formed in 1993.\nIn 12 years Kinross Gold has become the fourth largest gold producer in North\nAmerica. Kinross has operations in the United States, Brazil, Chile, Canada,\nRussia, and Zimbabwe. Over 4,000 employees at 10 mines will produce\napproximately 1.6 million ounces of gold equivalent in 2005 at an average cash\ncost of roughly $275 per ounce.\nKinross is listed on the New York Stock Exchange (symbol:KGC) and on the\nToronto Stock Exchange (symbol:K).\nKinross' strategic focus is to continue to increase cash flow per share.\nGrowth from existing core operations, an expanded greenfields exploration\nprogram, and an active business development group are all expected to\ncontribute to this strategy. Kinross has a simple, straightforward balance\nsheet with low debt level, and a no gold hedging policy in place.\n%SEDAR: 00002968E\n\n\n","length":2236,"tagName":"div"}]