Toronto, Ontario - 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.