June 18, 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 two separate agreements have been reached with two
holders of the Kinam $3.75 Series B Convertible Preferred Shares to exchange a total of 145,400
preferred shares (plus rights to accrued but unpaid dividends) for 2,686,492 common shares of
Kinross. Based on the closing price of Kinross common shares on the New York Stock Exchange (NYSE)
on June 18, 2001 of $0.99 per share, these transactions have a combined value of $2.7 million. As at
May 31, 2001 the 145,400 preferred shares were carried at $7.5 million on Kinross' consolidated
balance sheet. Kinross will use the $4.8 million difference in value associated with these transactions 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. These latest two
transactions are subject to regulatory approvals and Kinross obtaining a receipt from the Ontario
Securities Commission for a prospectus qualifying the distribution of the 2,686,492 common shares.
Upon the closings of these two transactions and the transaction announced on June 12, 2001 Kinross
will own 51.4% of the 1,840,000 Kinam $3.75 Series B Convertible Preferred Shares outstanding.
Bob Buchan, Chairman and CEO of Kinross stated that "although these two additional transactions
further improve Kinross' balance sheet, Kinross has no intention of acquiring more of the preferred
shares at this time."
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
and Chief Financial Officer