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Kinross and Red Back Combination Creates High-Growth Gold Producer in US $7.1 Billion Friendly Transaction
Aug. 03, 2010 10:04AM PST
Gold Investing
Kinross Gold Corporation (TSE:K)(NYSE:KGC) and Red Back Mining Inc. (TSE:RBI) announced that their respective boards of directors have unanimously approved a friendly merger through a plan of arrangement, whereby Kinross will acquire all of the outstanding common shares of Red Back that Kinross does not already own.
Kinross Gold Corporation (TSX:K)(NYSE:KGC) and Red Back Mining Inc. (TSX:RBI) announced that their respective boards of directors have unanimously approved a friendly merger through a plan of arrangement, whereby Kinross will acquire all of the outstanding common shares of Red Back that Kinross does not already own.
The press release is quoted as saying:
The total value of the proposed transaction is approximately US$7.1 billion, on a fully-diluted basis. • Red Back shareholders will receive 1.778 Kinross common shares, plus 0.110 of a Kinross common share purchase warrant for each Red Back common share held. Pursuant to the transaction, Kinross expects to issue approximately 425 million(1) Kinross common shares and approximately 26 million Kinross common share purchase warrants. Following completion of the transaction, the current Kinross shareholders will hold approximately 63%(1) of the combined company, while current shareholders of Red Back will hold approximately 37%.
Click here to access the entire press release