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Kinross receives pre-approval to increase Kupol ownership to 100% |
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Monday, 28 March 2011 11:50 |
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Kinross Gold Corporation announced that according to the Russian Federation's State Commission for the Control of Foreign Investments, Kinross' 100%-owned subsidiary, Kupol Ventures Limited, has received pre-approval from the Commission to increase its ownership in the Chukotka Mining and Geological Company (CMGC) - owner of the Kupol Mine and Kupol East-West exploration licences -- to 100% from the current 75%.
Kupol Ventures applied for and obtained the Commission's pre-approval further to discussions with the State Unitary Enterprise of the Chukotka Autonomous Okrug or "CUE" to repurchase the shares of CMGC currently held by CUE. Kinross will provide further details upon completion of final documentation, including a share purchase agreement. Kinross intends to finance the proposed acquisition costs through cash proceeds from the recent sale of shares in Harry Winston Diamond Corporation, in addition to a non-recourse debt facility of approximately US$200 million. Export Development Canada ("EDC") and a group of commercial banks have indicated their interest to participate in this financing. The Company has yet to obtain minutes of the Commission meeting, which may or may not include conditions that apply to the proposed transaction. |
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Last Updated on Monday, 28 March 2011 09:53 |
