TORONTO, Dec. 29 /CNW/ - Kinross Gold Corporation ("Kinross" or the
"Company") (TSX-K; NYSE-KGC) today announced that it has entered into a
definitive agreement with St Andrew Goldfields (TSX-SAS) ("St Andrew") to
exchange Kinross' Aquarius Project located in Timmins, Ontario for 100 million
common shares of St Andrew (approximately 14% undiluted ownership stake in
St Andrew) plus 25 million two year warrants on St Andrew common shares with
an exercise price of 17 cents.
St Andrew operates the Stock Gold Complex approximately 7 kilometers from
the Aquarius Project. Tye Burt, President and Chief Executive Officer of
Kinross said, "the economics of the Aquarius Project should be enhanced by
synergies with St Andrew's nearby operations. As a new shareholder, we also
see long-term potential for St Andrew's extensive land positions in the
Timmins camp."
The transaction is contingent on St Andrew posting satisfactory financial
assurance bonding relating to the Aquarius Project and is expected to close in
the first half of 2006. As a result Kinross will record a US$40 million
non-cash charge to third quarter 2005 earnings in connection with the
transaction which includes approximately US$10 million of goodwill.
About Kinross Gold Corporation
Kinross Gold is a Canadian gold mining company that was formed in 1993.
In 12 years Kinross Gold has become the fourth largest gold producer in North
America. Kinross has operations in the United States, Brazil, Chile, Canada,
Russia, and Zimbabwe. Over 4,000 employees at 10 mines will produce
approximately 1.6 million ounces of gold equivalent in 2005 at an average cash
cost of roughly $275 per ounce.
Kinross is listed on the New York Stock Exchange (symbol:KGC) and on the
Toronto Stock Exchange (symbol:K).
Kinross' strategic focus is to continue to increase cash flow per share.
Growth from existing core operations, an expanded greenfields exploration
program, and an active business development group are all expected to
contribute to this strategy. Kinross has a simple, straightforward balance
sheet with low debt level, and a no gold hedging policy in place.
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