Buckhorn project expected to contribute approximately 200,000 ounces per
year beginning 2008
TORONTO, Aug. 31 /CNW/ - Kinross Gold Corporation ("Kinross") (TSX:K and
NYSE:KGC) and Crown Resources Corporation ("Crown") (OTC-BB:CRCE) today
announced the completion of the previously announced acquisition of Crown. The
transaction closed immediately following the Crown Special Meeting at which
the Crown shareholders voted in favour of the plan of merger between Crown and
a wholly-owned subsidiary of Kinross.
The Buckhorn gold deposit owned by Crown is located in north-central
Washington State, USA, approximately 76 kilometers by road from Kinross'
Kettle River gold milling facility. Kinross is currently focused on obtaining
the necessary permits to proceed with building the Buckhorn project. It is
currently anticipated that construction will begin in late 2006 with
production expected to begin in late 2007.
"The Buckhorn project is expected to contribute approximately 200,000
gold ounces per year at low costs to our growth profile beginning in 2008,"
said Tye Burt, President and CEO of Kinross Gold Corporation. "By leveraging
our processing capability at Kettle River, we are able to access high quality
reserves without major capital costs. The operational synergies will create
value for shareholders in the near and long term."
Pursuant to the merger, shareholders of Crown will receive 0.32 of a
Kinross common share for each share of Crown common stock. Kinross will issue
approximately 14.65 million common shares in connection with the transaction.
Upon submission of their certificates representing shares of Crown common
stock, together with the requisite letters of transmittal which will be mailed
by Computershare Investor Services Inc., Crown shareholders will be issued
certificates representing the number of Kinross common shares to which they
are entitled under the plan of merger based on the exchange ratio. No
fractional Kinross shares will be issued and Kinross will pay cash in lieu
thereof.
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Cautionary Statements
This news release contains "forward-looking statements", within the
meaning of the United States Private Securities Litigation Reform Act of 1995
and similar Canadian legislation, concerning the business, operations and
financial performance and condition of each of Kinross and Crown. Generally,
these forward looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not expect",
"is expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made, and they are subject to
known and unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of Kinross and
Crown to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to risks related to:
modifications to existing mining plans as a result of regulatory requirements
or additional exploration activities; unexpected variations in ore grade,
tonnes mined, crushed or milled once mining has commenced; delay or failure to
obtain the required permits and approvals; timing and availability of external
financing on acceptable terms; the businesses of Kinross and Crown not being
integrated successfully or such integration proving more difficult, time
consuming or costly than expected; risks related to international operations;
actual results of current exploration activities; actual results of current
permitting activities; conclusions of economic valuations; changes in project
parameters as plans continue to be refined; future prices of gold and
commodities; failure of plant, equipment or processes to operate as
anticipated; accidents, labour disputes and other risks of the mining
industry; delays in the completion of development activities, and those
additional factors discussed in or referred to under "Risk Factors" and
elsewhere in Kinross' registration statement on Form F-4 and Kinross' and
Crown's other documents filed from time to time with the United States
Securities and Exchange Commission and Canadian securities regulatory
authorities In addition there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. Neither Kinross nor Crown undertakes to update any forward-looking
statements.
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About Kinross Gold Corporation
Kinross, a Canadian-based gold mining company, is the fourth largest
primary gold producer in North America and the eighth largest in the world.
With eight mines in Canada, the United States, Brazil and Chile, Kinross
employs more than 4,000 people.
Kinross maintains a strong balance sheet and a no gold hedging policy.
Kinross is focused on a strategic objective to maximize net asset value and
cash flow per share through a four-point plan built on growth from core
operations; expanding capacity for the future; attracting and retaining the
best people in the industry; and driving new opportunities through exploration
and acquisition.
Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and
the New York Stock Exchange (symbol:KGC).
%SEDAR: 00002968E
