Kinross Gold (K-T) has completed the sale of 23 million common shares to a syndicate of underwriters comprising CIBC World Markets, RBC Dominion Securities, Scotia Capital and Canaccord Capital paving the wave for Kinross to complete a tender offer for its subsidiary Kinam Gold‘s $3.75 Series B convertible preferred shares it doesn’t already own.
The deal generated gross proceeds of more than $31 million for Kinross, which said it plans to use the funds for the previously announced proposed acquisition should it decide to go ahead.
Kinam is an outgrowth of Kinross’ 1998 merger with Amax Gold.
In early February, Kinross informed Kinam of its plan to consider a cash tender offer of $16 per share for Kinam’s 894,600 B series it doesn’t already hold. Kinross currently owns all of Kinam common shares and just more than 51% of its issued and outstanding preferred shares.
Kinross and Kinam’s boards must still sign off on the tender deal.
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