MINING MARKETS & INVESTMENT NEWS – MERGERS & ACQUISITIONS — Kinross Gold wraps up merger with Amax Gold

Now that its merger with Amax Gold is complete, Kinross Gold (K-T) is the fifth-largest gold producer in North America.

Pursuant to the transaction, Kinross released from escrow 38.1 million subscription rights, converting them into the same number of shares of Kinross common stock. In addition, the company issued another 126.9 million shares to Amax Gold shareholders.

As majority (58.8%) shareholder in Amax, Cyprus Amax Minerals (CYM-N) will now hold 89 million shares of Kinross, representing 31% of the company’s 292 million outstanding shares. In addition, it holds warrants for another 10 million shares.

The deal enables Cyprus to wipe away US$500 million in debt, transferring US$135 million of that debt to Kinross (though Kinross anticipates no writedown as a result of the transfer).

With the addition of the Fort Knox mine in Alaska and the Kubaka mine in Eastern Russia, the new Kinross is expected to crank out 1.2 million oz. gold ly.

“These core assets together with the other operating assets, the strong balance sheet and, most importantly, the dedicated employees and shareholders are the key elements of the elevated platform from which we will continue to pursue our aggressive growth strategy,” says Kinross Chairman Robert Buchan.