The three-way merger of KINROSS GOLD, TVX GOLD and ECHO BAY MINES has been postponed until Jan.31, 2003, rather than the end of this month as earlier proposed. The January completion date may be further extended to Feb. 28, 2003, if necessary.
The merger was proposed in June 2002, and at the same time it was announced that TVX would buy Newmont’s interest in the TVX Newmont Americas joint venture, which covers the New Britannia gold mine in Manitoba. The delay of the merger is due in part to Kinross raising capital toward this US$180-million purchase. Earlier this week, Kinross announced that it has secured $152.5 million through the sale of 50 million share warrant units to a syndicate of investment dealers.
The deal is dependent on regulatory and other approvals. Business will be conducted under the Kinross name. The company’s annual gold production is expected to be about two million ounces at total cash costs of less than US$200 per ounce. Production will be supported by proven and probable reserves containing 17.9 million oz Au and 52.6 million oz Ag, an additional measured and indicated resource containing 19.2 million oz Au and over 60 million oz Ag, plus a further inferred resource of 8 million oz Au. The new Kinross will operate and maintain joint venture interests in 12 gold mines and one base metal mine including seven underground mines, four open pit mines and two operations expected to include both pits and underground mines.
Complete information is available from Lois-Ann L. Broderick, Echo Bay vice-president, at 780-496-9704 or view the slide show at www.kinross.com