Kinross Completes $610m Acquisition Deal With Barrick Gold

By Paul Ploumis (ScrapMonster Author)

January 12, 2016 02:43:16 AM

(Kitco News) - Kinross Gold Corp. (TSX: K) (NYSE: KGC) announced Monday afternoon the completion of an acquisition deal with Barrick Gold Corp. (NYSE:ABX)(TSX:ABX) for gold mines in Nevada.

In a press release, Kinross said it had “completed its acquisition of 100% of the Bald Mountain gold mine, which includes a large associated land package, and 50% of the Round Mountain gold mine in Nevada from Barrick Gold Corporation for $610 million in cash under the previously announced definitive asset purchase agreement.”

Kinross’ president and chief executive Paul Rollinson said the acquisition is expected to lower costs while preserving the company’s balance sheet strength.

“The Bald Mountain property encompasses a 600 km2 prospective land package along the southern extension of the Carlin trend, the most prolific gold producing region in the United States,” the press release said.

“Kinross will leverage Barrick's area expertise to explore and develop 40% of the land package outside the current core mining area as part of a 50/50 exploration joint venture,” the press release added.

Barrick president Kelvin Dushnisky said, in a company press release, that the company is also “excited to form a new exploration partnership with Kinross that will allow us to maintain significant exposure to a highly prospective land package at Bald Mountain."

Courtesy: Kitco News