St. Andrew to take over Aquarius

Kinross Gold (K-T, KGC-N) will farm out its Aquarius gold project east of Timmins, Ont., to St. Andrew Goldfields (SAS-T) in a share deal that will give the major a 14% interest in St. Andrew.

St. Andrew will issue 100 million shares and 25 million warrants to Kinross for the property, which St. Andrew plans to bring into its Stock Gold Complex mine plan. St. Andrew is bringing the Clavos and Taylor deposits, both north of Aquarius, into production using the existing Stock Twp. mill.

Probable reserves at Aquarius amounted to 15 million tonnes grading 2.16 grams gold per tonne at year-end in 2003. Those reserves were based on a gold price of US$325 per oz. and one earlier feasibility studies.

Kinross’s warrants are exercisable at 17 within two years of the closing of the Aquarius deal. St. Andrew shares closed at 12.5, unchanged, on the Toronto Stock Exchange on Wednesday.