Newmont drops Kinross shares

Newmont Mining (NEM-N) has sold 28 million of its 43.2 million shares in Kinross Gold (K-T) to a group of dealers led by Griffiths McBurney & Partners and RBC Dominion Securities for US$218 million, before taxes.

The sale leaves Newmont with a 4.9% indirect stake in Kinross, Canada’s third-largest gold producer. The company will record the gain in the third quarter.

Newmont originally came by its 13.8% stake in Kinross by converting its 45.3% stake in Echo Bay Mines under a 3-way merger involving Kinross, TVX Gold and Echo Bay in 2002.

The dealers plan on publicly offering the shares in Canada and privately placing them elsewhere.

In early trading following the news, Kinross shares dipped 39, or 3.6% of value, to $10.50.