Monday January 24, 4:35 pm Eastern Time
Company Press Release
Wheaton River and Kit Resources Special Committees
Approve Merger
TORONTO, ONTARIO--Wheaton River Minerals Ltd. (TSE: WRM - news) and Kit
Resources Ltd. (TSE: KIT - news) announced today that their respective boards of directors have unanimously recommended
that shareholders approve a business combination of the two companies pursuant to which they will merge by way of a court
approved plan of arrangement. The exchange ratio is one share of the merged company for each share of Wheaton River and
0.408 shares of the merged company for each share of Kit. The name of the merged company will be Wheaton River Minerals
Ltd.
Committees of the independent members of the board of directors of each company formed to review the exchange ratios have
determined that they are fair to the shareholders of each company and have received a formal valuation of each company and
fairness opinions from independent investment dealers. Completion of the merger is subject to requisite shareholders' approvals
from regulatory authorities, and the Ontario Superior Court of Justice. An interim order of the Court was issued today
providing directions with respect to the Arrangement and the Meetings of Shareholders of each company to approve the
arrangement. Meetings of the shareholders of the companies will be held on March 2, 2000 and a Joint Management
Information Circular is in the process of being mailed to shareholders.
Homestake Canada Inc., the beneficial owner of approximately 3,575,000 common shares of Kit representing approximately
9.5% of the total issued and outstanding shares of Kit, has entered into a Support Agreement with Wheaton River pursuant to
which it has agreed to vote its shares in favour of the proposed merger. Wheaton River currently owns 8,602,822 shares of
Kit.
Wheaton River Minerals Ltd. is a Toronto-based gold mining company. During the 1999 season, the Golden Bear Mine,
controlled through 89%-owned subsidiary, North American Metals Corp., produced 71,300 ounces of gold at a total cash
cost of US$162 per ounce. The Golden Bear mine, which is operated on a seasonal basis, has two more years of profitable
life. Wheaton River is also developing the 100%-owned Bellavista mine in Costa Rica. A feasibility completed in April, 1999,
estimated that the project will produce 60,000 ounces of gold per year at a total cash cost of US$179 per ounce, over a mine
life of 7.3 years. Capital cost to construct the project is estimated at US$28.3 million. Wheaton River had $12.3 million in cash
on December 31, 1999.
Kit Resources Ltd. owns a 100% interest in the George Lake gold project, located about 70 kilometres south of Bathurst Inlet
in the Nunavut Territory of northern Canada. MRDI Canada Inc. estimates that the project has an indicated resource of
4,238,000 tonnes grading 9.8 grams gold per tonne, and a further inferred resource of 2,222,000 tonnes grading 9.69 grams
gold per tonne. The total inferred and indicated gold resource is 2,027,000 ounces. The project is optioned to Kinross Gold
Corporation [NYSE:KGC - news], which can earn a 70% interest by spending $20 million by November 30, 2004.
Wheaton River has 40,197,007 shares outstanding, and Kit Resources has 37,548,261 shares outstanding. The merged
company would have approximately 52 million shares outstanding.
Contact:
Wheaton River Minerals Ltd.
Ian J. McDonald
Chairman and Chief Executive Officer
(416) 860-0919
www.wheatonriver.com
or
Wheaton River Minerals Ltd.
Kerry Knoll
Vice-President, Investor Relations
(416) 860-0919
www.wheatonriver.com
or
Kit Resources Ltd.
Robert Gilroy
President and Chief Operating Officer
(604) 684-9648
www.kitgold.com
or
Renmark Financial Communications
2080 boul. Rene-Levesque West
Montreal, Quebec H3H 1R6
(514) 939-3989
(514) 939-3717
www.renmarkfinancial.com |
