Toronto, Ontario - Kinross Gold Corporation (TSX-K;
NYSE- KGC) ("Kinross") is pleased to announce that it has completed
the purchase of the 51% of the Rio Paracatu Mineracao (RPM), the
owner of the Morro do Ouro mine (also known as Paracatu) in Brazil
from Rio Tinto Plc. Consideration of US$260 million was paid in
cash on completion and is subject to a working capital adjustment
post completion. This calculation will be based on final accounting
records for December 31, 2004 and will take several weeks to
compile. Kinross now owns 100% of the property and becomes the
operator.
In connection with this transaction, Kinross has entered into a
three-year revolving credit facility for US$200 million and
borrowed US$105 million to satisfy a portion of the purchase price
of US$260 million. This new credit facility replaces the existing
credit facility of US$125 million. The RPM gold mine is located
near Brasilia in the state of Minas Gerais, Brazil. It has been in
operation since 1987. Kinross acquired its 49% interest in the mine
on January 31, 2003 when it merged with TVX Gold Inc. Bob Buchan,
C.E.O. stated, "having 100% of this mine vaults Paracatu to be one
of Kinross' core assets. Early in 2005 we will begin an aggressive
exploration program designed to significantly increase the existing
reserve base. If successful this could allow us to revise the size
of the mill expansion we are contemplating."
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 Gold Corporation, 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. Important factors that could cause actual results to differ materially from Kinross’ expectations are disclosed under the heading “Risk Factors” and elsewhere in Kinross’ documents filed from time to time with the Toronto Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities.