Toronto, Ontario, and Denver, Colorado - Kinross
Gold Corporation (TSX-K; NYSE-KGC) ("Kinross") and Crown Resources
Corporation (OTCBB-CRCE) ("Crown") are pleased to announce that the
two companies have executed a definitive acquisition agreement (the
"Agreement") whereby Kinross will acquire Crown and its 100%-owned
Buckhorn Mountain gold deposit located in north central Washington
State, USA, approximately 67 kilometres by road from Kinross'
Kettle River gold milling facility.
Under the terms of the Agreement, shareholders of Crown will
receive 0.2911 shares of Kinross for each share of Crown. Assuming
all of Crown's warrants, options and convertible debentures are
converted, a total of approximately 13.1 million common shares of
Kinross will be issued upon the completion of the transaction. The
transaction is subject to regulatory approvals, a minimum
two-thirds approval at a special meeting of Crown shareholders and
other customary closing conditions. Prior to the completion of the
acquisition, Crown will dividend to its shareholders its
approximate 38.7% equity interest in Solitario Resources
Corporation (TSX-SLR).
The Buckhorn Mountain gold deposit is a high-grade skarn gold
deposit located 240 kilometres northwest of Spokane, Washington. In
late 2002 and early 2003, Crown completed a 41-hole infill diamond
drilling program and has engaged SRK Consulting to update its
reserve and mineralized material estimates incorporating the data
from the drilling program.
In addition to signing the Agreement, Kinross, through its
wholly-owned subsidiary, Echo Bay Minerals Company, and Crown
signed a toll milling agreement, that allows the Buckhorn Mountain
ores to be milled at Kinross' Kettle River gold milling facility.
The focus of these efforts is to provide flexibility with
permitting and design of a high-grade underground mine that
minimizes surface disturbance and environmental impacts while
providing significant economic benefits to the state and local
communities.
Cautionary Statement on Forward-Looking Information
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Kinross and Crown, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Development of Buckhorn Mountain is subject to the successful completion and implementation of an economically viable mining plan, obtaining the necessary permits and approvals from various regulatory authorities, and compliance with operating parameters established by such authorities. Important factors that could cause actual results to differ materially from Kinross' and Crown's expectations are disclosed under the heading "Risk Factors" and elsewhere in Kinross' and Crown's documents filed from time to time with the Toronto Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities.