Expects to close purchase of remaining 60% from Teck by end of 2008
TORONTO, Ontario - December 17, 2008 - Kinross
Gold Corporation ("Kinross") (TSX: K, NYSE: KGC) announced today
that it has completed its acquisition of a 40% interest in Minera
Santa Rosa SCM ("Minera") from certain subsidiaries of Anglo
American plc ("Anglo") for an aggregate purchase price of US$140
million. Minera owns 100% of the Lobo-Marte gold project located in
the Maricunga district of northern Chile, roughly midway between
Kinross' Maricunga and La Coipa mines.
As announced on November 20, 2008, Kinross has also entered into
a separate agreement with Teck Cominco Limited ("Teck") pursuant to
which Kinross will acquire the remaining 60% interest in Minera for
approximately 5.6 million common shares of Kinross, plus a net cash
payment of approximately US$40 million and a 1.75% net smelter
returns royalty on 60% of future production, payable when the gold
price is US$760 per ounce or more. Kinross expects the purchase
from Teck to be completed before the end of 2008.
Cautionary Statement on Forward-Looking Information
All statements, other than statements of historical fact, contained in this news release, including any information as to the future financial or operating performance of Kinross constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the “safe-harbour” provisions under the United States Private Securities Litigation Reform Act of 1995 and are based on the expectations, estimates
and projections of management as of the date of this news release unless otherwise stated. The words “plans”, “expects”, “scheduled”, “estimates”, “intends”, “anticipates”, “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “should”, “might”, or “will be taken”, “occur” or “be achieved”, and similar expressions, identify forward-looking statements.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Kinross contained in this news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein as well as assumptions: (1) that Kinross will complete the acquisition of 60% of the outstanding common shares of Minera in accordance with the terms and conditions of the Kinross’ agreement with Teck; (2) regarding the viability, permitting and development of the Lobo-Marte project, including, without limitation, the metallurgy and processing of its ore, being consistent with Kinross’ current expectations; and (3) that there will be no significant political developments, whether generally or in respect of the mining industry specifically, in Chile not consistent with Kinross’ current expectations.
The forward-looking information set forth in this news release is subject to various risks and other factors which could cause actual results to differ materially from those expressed or implied in the forward-looking information, including the risk that the acquisition of 60% of the outstanding common shares of Minera from Teck will not be completed for any reason. Certain of these risks, factors, estimates and assumptions are described in more detail in Kinross’ most recently filed Annual Information Form in the section entitled “Risk Factors” and the “Risk Analysis” section of our most recently filed Management’s Discussion and Analysis, to which readers are referred and which are incorporated by reference in this news release. In addition, all forward-looking statements made in this news release are qualified by the full “Cautionary Statement” in such Annual Information Form and the “Cautionary Statement on Forward Looking Information” in such Management’s Discussion and Analysis. These risks, factors, estimates and assumptions are not exhaustive. Kinross disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
Other Information
Where we say “we”, “us”, “our”, the “Company”, or “Kinross” in this news release, we mean Kinross and/or its subsidiaries, as may be applicable.