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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Zardoz who wrote (86749)	6/10/2002 3:38:22 PM
From: long-gone	Respond to of 116779

Kinross press release TORONTO/EDMONTON, June 10 (PRNewswire-FirstCall) -- Kinross Gold Corp., Echo Bay Mines Ltd., and TVX Gold Inc. are pleased to announce the proposed combination of the three companies and the concurrent acquisition of the 49.9 percent interest in the TVX Newmont Americas joint venture owned by Newmont Mining Corp. Kinross, after having combined with Echo Bay and TVX and after having acquired the TVX NA interest will possess the following attributes: -- Top 10 global gold company with market capitalization in excess of US$2 billion. -- 2 million ounce per year gold producer with total cash costs less than US$200 per ounce. -- Only senior North American primary producer with a non-hedging policy and less than 5 percent of reserves hedged One of the best capitalized gold producers in North America. -- 65% of annual production in the United States and Canada. -- Highest leverage to gold prices among major North American producers. -- and strong organic growth from a global resource base exceeding 40 million ounces of gold The combination of the companies will be achieved by a Plan of Arrangement, whereby Echo Bay shareholders receive 0.52 of a Kinross share for each Echo Bay share and TVX shareholders receive 0.65 of a Kinross share for each TVX share (adjusted accordingly in the event TVX completes the previously approved 10-for-one share consolidation). Concurrently with the combination taking effect, TVX will acquire Newmont's TVX NA interest for US$180 million. The parties expect to enter into a combination agreement which will provide that the combination will be effected pursuant to the Plan of Arrangement. Based on the 30-day average trading prices on the TSX of Kinross, Echo Bay and TVX prior to the announcement of the combination, the exchange ratios imply a price of Cdn$1.81 per Echo Bay share, or a 23 percent premium, and a price of C$ 2.27 a TVX share, or a 47 percent premium. -END-