Toronto, Ontario - Kinross Gold Corporation (TSX-K,
NYSE-KGC) ("Kinross") has redeemed all of its outstanding 5.5%
Convertible Unsecured Subordinated Debentures. A total of Cdn
$198.3 million was paid to Computershare Trust Company of Canada
("Computershare") representing principal of Cdn $195.6 million plus
accrued interest to September 29, 2003. The source of funds was the
recently completed equity issue.
The equity issue and subsequent redemption of the convertible
debentures puts Kinross in a net cash position, where cash is
greater than long term obligations, for the first time since the
Amax Gold Inc. merger in June 1998. "I am very pleased to have the
balance sheet of Kinross in such excellent shape. Kinross is
extremely well positioned to take on new projects and
opportunities", said Robert Buchan, President and CEO of
Kinross.
While 99.8% of debenture holders held their debentures through
nominee accounts and were automatically redeemed, a few debenture
holders, who held the debenture in certificate form, have not yet
responded to the debenture redemption. The residual funds for these
debentures will continue to be held in escrow by Computershare
pending surrender of the certificates. In order to access funds
held in escrow for debentures held in certificate form, holders are
required to surrender their certificates, either by hand or by
mail, to Computershare Trust Company of Canada, 100 University
Avenue, 9th floor, Toronto, Ontario, M5J 2Y1, Attention: Corporate
Actions. For further clarification, please contact Computershare at
514-982-8994 or toll free within North America at 1-800-663-9097.
The convertible debentures no longer trade on the Toronto Stock
Exchange and will no longer appear as an obligation on the balance
sheet of Kinross.
Kinross, based in Toronto, Canada, is the fourth largest primary
gold producer in North America and seventh largest primary gold
producer in the world. Major operations are located in the United
States, Canada, Brazil, Chile, and Russia.
Cautionary Statement on Forward-Looking Information
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, 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.