Kinross signs deals with several companies

Toronto-listed Kinross Gold has made several changes to its ownership positions in various companies.

The gold producer has entered into an agreement with Imperial Metals (TSE) whereby it will purchase 4.1 million shares of Mirage Resources (TSE) in consideration of 698,936 shares of Kinross.

As a result, Kinross will hold 47.35% of the shares of Mirage.

Kinross also has sold 415,000 shares of Baja Gold (TSE), 586,036 shares of Newhawk Gold Mines (TSE), 470,597 shares of Huldra Silver (VSE), 4.2 million shares of Brenna Resources (VSE) and 1 million shares of Oracle Minerals (VSE) — all in exchange for 646,950 shares of Welcome Opportunities (VSE).

In addition, Kinross has subscribed to 500,000 units of Welcome at $2.25 per unit for a total subscription price of $1.1 million. Each unit consists of one share and half a non-transferable share purchase warrant, and entitles Kinross to acquire an additional share for $2.50 over two years.

Kinross is also expected to acquire an additional 64,161 shares of Welcome, which would result in its holding, in total, 1.7 million shares of that company (or 46% of Welcome’s issued and outstanding capital).

The assets of Welcome Opportunities include: the Kona volcanogenic massive sulphide property near Fire Lake, Y.T., where shallow drilling has outlined 1.5 million tonnes grading 1% copper, 1% zinc and 0.75 gram gold per tonne; the Lady Di property, 50 km north of Faro, Y.T., where one drill hole intersected 1 metre grading 9.6% zinc and 20 grams gold; and a 35% interest in the Beechy and Thistle properties, 170 km northeast of the Lac de Gras diamond discovery in the Northwest Territories.

Welcome’s investment portfolio includes shares of several companies, including Columbia Gold Mines (VSE) and Arequipa Resources (VSE). The total value of these is estimated to exceed $4.5 million.