TORONTO and VANCOUVER - Kinross Gold and Underworld Resources have signed an agreement covering the takeover of Underworld by Kinross. The latter company has offered to acquire 100% of the outstanding common shares of Underworld other than the 8.5% it already owns. Kinross proposes to issue 0.141 of a Kinross common share plus $0.01 in cash per Underworld share. Underworld's directors and senior management have already entered into lock-up agreements with Kinross.
Underworld is active at its the White Gold property 95 km south of Dawson City, YT. Two deposits, the Golden Saddle and Arc, have been tested. The indicated resource at Golden Saddle is 9.8 million tonnes grading between 3.19 g/t Au (suitable for open pit mining) and 3.23 g/t (underground). There is also an indicated resource. The 4.4 million tonnes outlined in the Arc deposit is an inferred resource having an average grade of 1.21 g/t Au.