Toronto, Ontario - July 22, 2010 - Kinross Gold
Corporation (TSX:K) (NYSE:KGC) ("Kinross"1) today
announced that it has entered into an agreement with B2Gold Corp
("B2Gold"1) to acquire B2Gold's right to an interest in
the Kupol East and West exploration licence areas. Under the terms
of a previous agreement, Kinross had undertaken to secure a 37.5%
joint venture interest for B2Gold in the Kupol East and West
exploration licence areas. According to the new agreement, Kinross
is no longer obligated to enter into joint venture arrangements
with B2Gold in respect of Kinross' 75% interest in these licence
areas. In exchange, Kinross will pay B2Gold: US$33 million in
cash on closing; contingent payments based on National Instrument
43-101 qualified proven and probable reserves at the subject
properties, should such reserves be declared in future; and,
payments based on net smelter returns from any future production at
the properties. Further details are described in the
definitive agreement. The closing is subject to certain
customary conditions, and is expected to occur in August, 2010.
The Kupol East and West exploration licences will remain
100%-owned by the Chukotka Mining & Geological Company (CMGC),
which also owns 100% of the Kupol mine. CMGC is owned 75% by
Kinross and 25% by the State Unitary enterprise of the Chukotsky
Autonomous Okrug (Chukotsnab). The licence areas subject to this
transaction lie adjacent to the Kupol mine site and are
approximately 100 kilometres south of the Dvoinoye and
Vodorazdelnaya properties.
(1) Refers to both companies and their applicable
subsidiaries.