Toronto, Ontario, January 23, 2008 - Kinross
Gold Corporation (TSX: K; NYSE: KGC) ("Kinross") announced today
that it has launched a private offering of approximately US$400
million of senior unsecured convertible notes due March 2028 (the
"Convertible Notes"). Kinross expects to grant the initial
purchasers in the offering a 30-day option to purchase up to an
additional US$60 million of Convertible Notes.
The final terms of the offering have not been fixed. Kinross
currently expects that the Convertible Notes will be convertible
into Kinross common shares at a fixed conversion rate reflecting an
effective conversion price higher than the closing share price on
the day the offering is priced, and that any conversion right will
be contingent on Kinross' common shares trading at a premium to
that effective conversion price or upon the occurrence of certain
other specified conversion events. Kinross expects that the terms
of the Convertible Notes will provide that Kinross may elect, in
lieu of delivering Kinross common shares, to settle any conversion
obligation in cash or in a combination of cash and Kinross common
shares. The offering of Convertible Notes is expected to close,
subject to market conditions and satisfaction of closing
requirements, on or about January 30, 2008.
Kinross intends to use a portion of the expected net proceeds of
the offering to repay indebtedness under its secured term loan
facility, and expects to use the balance of the net proceeds to
fund capital expenditures and for general corporate purposes.
The offering is to be made pursuant to Rule 144A under the
Securities Act of 1933 (the "Act"). The offering will not be
registered under the Act and none of the Convertible Notes or any
Kinross common shares issuable upon any conversion of the
Convertible Notes will be offered or sold in the United States
absent registration under the Act or the availability of an
applicable exemption from registration requirements. Offers and
sales in Canada will be made only pursuant to exemptions from the
prospectus requirements of applicable Canadian provincial or
territorial securities laws. This press release does not constitute
an offer to sell or the solicitation of an offer to buy any
security.
Cautionary Statement on Forward-Looking Information
This press release contains forward-looking statements regarding Kinross and its financing arrangements, including its expectations that the offering will be successfully completed consistent with the terms outlined above. Actual results and developments may differ materially from those contemplated by these statements depending on, among others, such key factors as market conditions, global political uncertainties, investor demand and the timing and final terms of such financing arrangements. Kinross disclaims any intention or obligation to update any forward-looking statement even if new information becomes available as a result of future events or for any other reason.