GOLD: Kinross arranges $250M bought deal financing

TORONTO – Kinross Gold Corp. has arranged a bought deal offering of 83.4 million common shares at a price of US$3.00 each for gross proceeds of approximately US$250 million. TD Securities and Scotiabank are leading the syndicate that will provide financing. Kinross intends to use the funds to repay debt, notably US$175 million to Barrick Gold to repay a credit facility. Earlier this year, Kinross agreed to pay US$610 million for three of Barrick’s non-core assets – a 100% interest in the Bald Mountain gold mine and an additional 50% of the Round Mountain gold mine – in Nevada. The balance will be used to pay down debt maturing in 2016 and for general corporate purposes. Kinross has granted the underwriters an additional 15% option to cover over-allotments, if any. If it is fully exercised, the option could add an extra US$37.5 million to the gross proceeds. Kinross maintains its website at www.Kinross.com.