June 12, 2001
All dollar amounts are in US dollars
Toronto Ontario –
Kinross Gold Corporation (TSE-K; NYSE-KGC)
and its subsidiary, Kinam Gold
Inc. (NYSE-KGC PrB), announced today that an agreement has been reached with the largest holder of
the Kinam $3.75 Series B Convertible Preferred Shares to exchange its 800,000 preferred shares (plus
rights to accrued but unpaid dividends) for 21.5 million common shares of Kinross. Based on the
closing price of Kinross common shares on the New York Stock Exchange (NYSE) on June 12, 2001 of
$0.96 per share, this transaction has a value of $20.6 million. As at May 31, 2001 the 800,000
preferred shares were carried at $41.4 million on Kinross’ consolidated balance sheet. Kinross will use
the $20.8 million difference in value associated with this transaction to reduce the carrying value of
certain property, plant and equipment on its consolidated balance sheet, resulting in lower future
depreciation, depletion and amortization expenses. This transaction is subject to regulatory approvals
and Kinross obtaining a receipt from the Ontario Securities Commission for a prospectus qualifying the
distribution of the 21.5 million common shares. Upon the closing of this transaction, expected by June
26, 2001, Kinross will own 43.5% of the 1,840,000 Kinam $3.75 Series B Convertible Preferred Shares
outstanding.
Bob Buchan, Chairman and CEO of Kinross stated that “this transaction is another example of Kinross
improving our balance sheet even as gold prices continue to languish near 22-year lows.” Earlier in
2001 Kinross made a voluntary prepayment of $22 million on the Fort Knox Industrial Revenue Bonds
of its 100% owned subsidiary, Fairbanks Gold Mining Inc. Bob Buchan also stated that “Kinross remains
focussed on enhancing shareholder value through appropriate transactions that further strengthen our
balance sheet.”
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 (“Kinross”), 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.
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For additional information contact:
Robert M. Buchan
Chairman and Chief Executive Officer
Tel.: (416) 365-5650
Gordon A. McCreary
Vice President, Investor Relations and Corporate Development
Tel.: (416) 365-5132
Brian W. Penny
Vice President, Finance