TORONTO, Ontario KINROSS GOLD has signed a letter of intent to acquire CROWN RESOURCES CORP. of Wheat Ridge, Colorado. Kinross is interested in Crown's Buckhorn Mountain gold project 240 km northwest of Spokane, Washington.
The letter specifies that shareholders of Crown will receive 0.2911 Kinross shares for each share of Crown. Assuming all of Crown's warrants, options and convertible debentures are converted, a total of approximately 13.1 million common shares of Kinross will be issued upon the completion of the deal. Before the transaction becomes binding, execution of definitive documentation and respective board approvals are required. The transaction is also subject to regulatory approvals, the successful completion of due diligence and a minimum two-thirds approval at a special meeting of Crown shareholders. The objective is to close the transaction before year-end.
The Buckhorn Mountain gold deposit is a high-grade skarn deposit. At the end of 2002, Crown reported total proven and probable reserves of 1.94 million tonnes grading 13.44 g/t Au and further mineralized material of 1.07 million tonnes grading 13.82 g/t Au. The mine plan calls for underground development. Buckhorn ore might be milled at Kinross' nearby Kettle River mill.
More information about the Buckhorn Mountain project is available at www.crownresources.com.
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