LINEAR GOLD AND KINROSS AGREE TO PARTNER ON THE
IXHUATAN PROJECT
Toronto, ON, September 6, 2007
– Linear Gold Corp. (TSX-LRR) (“Linear”) and Kinross Gold Corporation
(TSX-K; NYSE-KGC) (“Kinross”) are pleased to announce that they have reached an agreement for Kinross to
earn an interest in Linear’s 98,000-hectare Ixhuatan Project, located in Chiapas, Mexico (the “Project”). This
agreement will ensure that the Ixhuatan Project continues to be aggressively explored with the benefit of
Kinross’ expertise with advanced projects and with the objective of establishing a world-class mining district.
Kinross can earn up to a 70% interest in the Project by undertaking US$15,000,000 of exploration expenditures
and making payments to Linear of US$101 million plus a production decision fee of up to US$15 million. The
transactions under the agreement are subject to the approval of the board of directors of both companies and
execution of a definitive agreement within 45 days. Upon execution of the definitive agreement, Kinross will
immediately pay Linear US$1.0 million, incur a minimum of US$15,000,000 of expenditures on the project
within a 24-month period and will then have the option to acquire an initial 60% interest in the Project by
paying Linear US$45 million. Kinross will have a further option to increase its interest in the Project to 70% by
making an additional payment to Linear of US$55 million within 90 days of Kinross’ board of directors
approving the construction of a mine based on a NI 43-101 compliant feasibility study. If a production decision
is made by Kinross’ board of directors, and the Proven and Probable Gold Reserves and Gold Equivalent Silver
Reserves included in the feasibility study are greater than 2.0 million ounces, Kinross will pay an additional
production decision fee to Linear based on the following parameters:
Proven and Probable Gold Reserves and
Gold Equivalent oz. Silver Reserves
2.0 million ozs. to 2.49 million ozs.
2.5 million ozs. to 2.99 million ozs.
Greater than 3.0 million ozs.
Kinross will be operator of the project.
The Ixhuatán Project hosts the Campamento Gold Deposit, the Cerro La Mina Discovery, where impressive
copper, gold and molybdenum mineralization has been identified, and several mineralized zones including
Laguna Chica, Laguna Grande, Caracol and the Western zone, all of which have returned significant drill
results. Exploration throughout the Project has identified extensive areas of gold, copper and molybdenum
mineralization supporting the Project’s potential to host multiple deposits and potentially develop into a new
mining district.
Wade Dawe, Linear’s President and Chief Executive Officer, said, “We are confident that Kinross’ significant
exploration commitment will result in the discovery of new deposits within the Ixhuatan Project and believe that
Kinross is an ideal partner for the future advancement of the Ixhuatan Project, including potential development
and production.”
Kinross’ President and Chief Executive Officer, Tye Burt, said: “We view Linear as an excellent partner and the
Payment
US$5.0 million
US$10.0 million
US$15.0 million