Kinross Gold (K-T, KGC-N) will take a US$40 million non-cash charge against its third-quarter earnings when the deal to sell the Aquarius gold project east of Timmins, Ont., closes.
St. Andrew Goldfields (SAS-T) will issue 100 million of its shares to Kinross, giving the major a 14% interest in St. Andrew, and will issue 25 million warrants, with a life of two years, entitling Kinross to buy shares at 17.
St. Andrew still has to provide financial assurance bonding to cover reclamation and closure liabilities on Aquarius, but has completed its due-diligence investigations. The company plans to integrate an open pit mine and 7,500-tonne-per-day mill at Aquarius with its Stock Twp. gold mill, about 15 km away, and two smaller-tonnage underground deposits, Clavos and Taylor, which would feed the Stock mill.
Kinross’s reserve figure on Aquarius is 15 million tonnes grading 2.16 grams gold per tonne.
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