Kinross sells 50m units

Shares of Kinross Gold (K-T) saw heavy action in Toronto on Dec. 5, as the gold miner the completed the previously announced sale of 50 million units at $3.05 apiece.

The shares were sold to a group of underwriters co-led by Griffiths McBurney & Partners and CIBC World Markets, and including RBC Capital Markets, Scotia Capital and Canaccord Capital.

Each unit comprises one share plus half a share purchase warrant ; a full warrant is exercisable for one share at $5 until Dec. 5, 2007.

Kinross also notes that it has entered into a commitment letter with a group of financial institutions for a US$125 million revolving credit facility. The facility will replace the company’s current outstanding secured credit. The facility will also cover additional credit required for the TVX Gold (TVX-T) and Echo Bay Mines (ECO-T) financial assurance requirements for mine closure with various regulatory bodies.

Kinross expects the facilities to be secured by first ranking security interests in substantially all of its (and its subsidiaries) assets, properties and will also contain a number of financial and operating covenants.

The facilities are subject to, among other things, the completion of the proposed Kinross, Echo Bay and TVX three-way merger.

That merger has been delayed until at least January, with a new termination date of Jan. 31 agreed upon. The deal is being held up by a review by the U.S. Securities and Exchange Commission of a preliminary proxy statement refiled in September.

The termination date may be again automatically delayed to February pending approval of the merger by a Canadian court.

By mid-afternoon in Toronto, Kinross’ issue was a nickel higher at $2.94 on a volume of nearly 9.3 million shares.

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