The Globe and Mail reports in its Tuesday, Aug. 3, edition that Kinross Gold said Monday it is making a friendly play for the shares of Red Back Mining it does not already own in a deal valued at $7.1-billion (U.S.). The Globe’s Brenda Bouw writes the deal gives Kinross a market capitalization of about $18-billion (U.S.). With Red Back, Kinross’s annual gold production should reach 3.9 million ounces by 2015, up from an expected 2.2 million ounces this year. The deal also allows Kinross to broaden its operations into Ghana and Mauritania in West Africa, an area many see as the fastest-growing region for gold production in the world. Redback shares have soared about five-fold over the past two years, and Kinross is paying a 21-per-cent premium over the recent share price. When Kinross bought a 9.4-per-cent interest in Red Back in May for $600-million, investors dumped Kinross shares amid worries it paid too much. Kinross boss Tye Burt dismissed those concerns Monday, saying the company has a “more comprehensive” understanding than the street, and believes the investment will pay off. The deal also strengthen ties between Mr. Burt and Lukas Lundin, who has an interest in Red Back.

I believe the Lundin’s hold over 10 million shares of NES

also, George Brack a director of Red Back is a consultant to NES….

August 4th, 2010
Categories: Uncategorized . Author: admin