Kinross drops Pacific Rim stake

As expected, Kinross Gold (K-T) has sold off its entire stake in junior Pacific Rim Mining (PMU-T).

The 17.6 million shares sold by Kinross represent 22% of Pacific Rim’s share base.

Toronto-based GMP Securities said the shares were bought up largely by institutional investors. Pacific Rim’s management also acquired some of the shares.

The company says it believes that in the end no one investor holds 10% or more of its stock.

“We are very pleased that the Kinross shareholding was placed primarily institutionally and the overhang in the market was cleared in a timely manner,” said Pac Rim President Catherine McLeod-Seltzer.

The company’s chief executive Tom Shrake said, “The opportunity provided by the Kinross sale to increase the company’s institutional shareholder base is a positive development as Pacific Rim pursues its corporate goals.”

Pacific Rim recently posted a third-quarter net loss of US$1.7 million (or 2 per share), compared with a year-ago net loss of US$1.3 million (2 per share). The bigger loss primarily reflects increased exploration spending. Revenue from gold and silver sales between the two periods increased to US$3.6 million from $3 million. Higher gold prices helped to offset lower gold sales volumes (8,500 oz. versus 8,800 oz.). The company’s average realized price for the quarter climbed US$74 per oz. to US$381 per oz.

Pac Rim’s shares finished 30, or nearly 19%, lower at $1.30 with more than 18.4 million shares traded, enough to rank as the TSX’s most traded issue on Dec. 23, the day of the sale. The shares rebounded to the tune of 14 to $1.44 in early trading on Dec. 24.