TORONTO – Kinross Gold Corp. says the US$250-million bought deal offering it announced three weeks ago is oversubscribed. The underwriters have exercised their over-allotment option to purchase an additional 12.5 million common shares and raise and extra US$37.5 million. That brings the total amount raised to more than US$285.7 million.
Much of the money raised – US$175 million – will be used to repay a credit facility arranged through Barrick Gold. Earlier this year, Kinross agreed to pay US$610 million for three of Barrick’s non-core assets. The balance will be used to pay down debt maturing this year and for general corporate purposes.
For 2016, Kinross expects to produce between 2.7 million and 2.9 million oz of gold equivalent at an all-in sustaining cost per ounce of US$890 to US$990.