Kinross eyes up to $31 million

Kinross Gold (K-T) has entered into an underwriting agreement with a syndicate led by CIBC World Market, RBC Capital Markets and Scotia Capital to buy and sell to the public 20 million Kinross treasury shares.

The deal includes an option for up to an additional 3 million shares, exercisable 48 hours prior to closing.

Assuming that the over-allotment option is not exercised, the sale would generate gross proceeds of $27 million. If the option is exercised an additional $4 million would be realized. The transaction is subject to regulatory and stock exchange approval. Closing is expected by about Feb. 12, 2002.

By mid-afternoon on Tuesday, Kinross shares were off 4 at $1.43 on the Toronto Stock Exchange as investors sold off their shares for a profit before buying them back at the offering’s lower price. The issue was one of the TSE’s busiest with more than 3 million shares on the go.