Kinross Announces Common Share Offering From Treasury and the Intent to Use Proceeds to
Redeem its 5.5% Convertible Unsecured Subordinated Debentures
Toronto, Ontario, August 11, 2003…Kinross Gold Corporation (TSX-K and K.db; NYSE-KGC) (“Kinross”
or the “Company”) announced that is has entered into an underwriting agreement with a syndicate of
underwriters led by CIBC World Markets Inc. and Scotia Capital Inc., under which the underwriters
have agreed to buy and sell to the public 20 million Common Shares of the Company from treasury.
The Company has granted the underwriters an option to purchase up to an additional 15% of the
offering at the same price until 30 days after closing.
The purchase price of Cdn. $9.26 per Common Share will result in gross proceeds of Cdn. $185.2
million, assuming that the over-allotment option is not exercised, and approximately Cdn. $213.0
million if the over-allotment option is fully exercised. The net proceeds of the offering will be used to
repurchase the Company’s outstanding issue of 5.5% Convertible Unsecured Subordinated Debentures
(“Convertible Debentures”). The transaction is subject to the receipt of all necessary regulatory and
stock exchange approvals. Upon the closing of the equity financing, expected on or about August 28,
2003, Kinross intends to issue official notification of the redemption of 100% of the Company’s
Convertible Debentures at par plus accrued and unpaid interest. The principal amount of the
Convertible Debentures outstanding is Cdn. $195.6 million and the interest payments were paid up to
date as of June 30, 2003, the last interest payment date. Under the terms of redemption of the
Convertible Debentures the Company is obligated to give 30 days notice of redemption. Assuming the
equity financing closes on August 28, 2003, the 30-day official notification of redemption of the
Convertible Debentures will be issued immediately thereafter and sufficient funds will be subsequently
deposited with the transfer agent to allow redemption payments for 100% of the Convertible
Debentures outstanding to begin on September 29, 2003. Consequently, by this schedule, the
Convertible Debentures will no longer appear as an obligation on the balance sheet of the Company
effective September 29, 2003.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and
may not be offered or sold in the United States absent registration or an applicable exemption from the
registration requirements. This press release shall not constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sale of the securities in any State in which such offer, solicitation or
sale would be unlawful.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S.
SECURITIES LAW.
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For additional information contact:
Robert M. Buchan
President and Chief Executive Officer
Tel: (416) 365-5650
Gordon A. McCreary
Vice President Corporate Affairs
Tel: (416) 365-5132