Kinross announced today that Kinross has entered into a letter of intent with Wheaton River Minerals Ltd.
Toronto, Ontario -- Kinross Gold Corporation (TSE-K; Amex-KGC) announced today that Kinross has entered into a letter of intent with Wheaton River Minerals Ltd. (TSE-WRM) to acquire its interest in the George/Goose Lake Gold Project located south of Bathurst Inlet in Nunavut Territory, Canada. The total consideration for this acquisition will be the issuance to Wheaton River of 4,000,000 common shares of Kinross. Kinross is currently in the second year of exploration expenditures on the George/ Goose Lake Gold Project where Kinross has the right to earn a 70% interest in these properties from Wheaton River by spending Cdn$20 million by November 30, 2004. Kinross has incurred approximately Cdn$6 million of exploration expenditures on the George/Goose Lake properties over the past two years and had established a total geological mineral resource of approximately 2.8 million ounces of gold at the end of last year. This total resource consisted of an inferred resource at Goose Lake of 3,897,000 tonnes grading 12.51 grams of gold per tonne (1,568,000 ounces of gold) and an indicated resource at George Lake of 2,620,000 tonnes grading 9.95 grams per tonne (838,000 ounces of gold) and an inferred resource at George Lake of 1,289,000 tonnes grading 10.11 grams per tonne (419,000 ounces of gold). The 2001 drilling program concluded recently and a new resource calculation is expected by year-end. The transaction is expected to close by December 14, 2001.
Additionally, Kinross announced today that recently, a lawsuit has been filed against Omolon Gold Mining Company, the owner and operator of the Kubaka mine, in which Kinross indirectly owns 54.7% of the issued and outstanding common stock. The lawsuit, seeking US$45 million from Omolon, was brought in the Magadan region, Russia, by a minority shareholder of Omolon. Omolon's counsel has advised that Omolon has good defenses available to it on the merits and they are highly confident that Omolon will successfully defend this lawsuit.
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