Kinross Completes Acquisition of Crown Resources
Buckhorn project expected to contribute approximately 200,000
ounces per year beginning 2008
TORONTO, August 31, 2006
–
Kinross Gold Corporation (“Kinross”) (TSX:K and
NYSE:KGC)
and Crown Resources Corporation (“Crown”) (OTC-BB:CRCE) today
announced the completion of the previously announced acquisition of Crown. The
transaction closed immediately following the Crown Special Meeting at which the
Crown shareholders voted in favour of the plan of merger between Crown and a
wholly-owned subsidiary of Kinross.
The Buckhorn gold deposit owned by Crown is located in north-central Washington
State, USA, approximately 76 kilometers by road from Kinross' Kettle River gold milling
facility. Kinross is currently focused on obtaining the necessary permits to proceed
with building the Buckhorn project. It is currently anticipated that construction will
begin in late 2006 with production expected to begin in late 2007.
“The Buckhorn project is expected to contribute approximately 200,000 gold ounces
per year at low costs to our growth profile beginning in 2008,” said Tye Burt, President
and CEO of Kinross Gold Corporation. “By leveraging our processing capability at
Kettle River, we are able to access high quality reserves without major capital costs.
The operational synergies will create value for shareholders in the near and long
term.”
Pursuant to the merger, shareholders of Crown will receive 0.32 of a Kinross common
share for each share of Crown common stock. Kinross will issue approximately 14.65
million common shares in connection with the transaction. Upon submission of their
certificates representing shares of Crown common stock, together with the requisite
letters of transmittal which will be mailed by Computershare Investor Services Inc.,
Crown shareholders will be issued certificates representing the number of Kinross
common shares to which they are entitled under the plan of merger based on the
exchange ratio. No fractional Kinross shares will be issued and Kinross will pay cash in
lieu thereof.
Cautionary Statements
This news release contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform
Act of 1995 and similar Canadian legislation, concerning the business, operations and financial performance and condition of each of
Kinross and Crown. Generally, these forward looking statements can be identified by the use of forward-looking terminology such as
“plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does
not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”,
“would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or achievements of Kinross and Crown to be materially
different from those expressed or implied by such forward-looking statements, including but not limited to risks related to:
modifications to existing mining plans as a result of regulatory requirements or additional exploration activities; unexpected variations
in ore grade, tonnes mined, crushed or milled once mining has commenced; delay or failure to obtain the required permits and
approvals; timing and availability of external financing on acceptable terms; the businesses of Kinross and Crown not being integrated
successfully or such integration proving more difficult, time consuming or costly than expected; risks related to international
operations; actual results of current exploration activities; actual results of current permitting activities; conclusions of economic
valuations; changes in project parameters as plans continue to be refined; future prices of gold and commodities; failure of plant,
equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in the
completion of development activities, and those additional factors discussed in or referred to under "Risk Factors" and elsewhere in
Kinross’ registration statement on Form F-4 and Kinross' and Crown's other documents filed from time to time with the United States
Securities and Exchange Commission and Canadian securities regulatory authorities In addition there may be other factors that
cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking statements. Neither Kinross nor Crown undertakes to update any forward-looking
statements.