Kinross Gold to buy Aurelian Resources for $1.18B in stock

Kinross Gold Corp is reported by the media that the company will acquire Canada-based Aurelian Resources Inc. for more than $1 billion in a move designed to boost its mining reserves. Toronto-based Kinross will pay 0.317 Kinross shares, plus 0.1429 of a warrant, for each Aurelian share. The warrant will have an exercise price of $32 per Kinross share, and will expire within five years. The deal — worth about Canadian $1.2 billion (U.S. $1.18 billion) — gives Kinross control over Aurelian’s gold, silver and base metals reserves in Ecuador’s Cordillera del Condor region.

Kinross President and Chief Executive Tye W. Burt said that We intend to pursue a focused strategy to further define the deposit, and believe that this combination can make an important contribution to our future.

Kinross expects to issue about 47 million shares, or about 8 percent of its outstanding common shares, as part of the buyout. So far this year, Kinross’ stock — which closed Wednesday at $20.73 — is up about 13 percent.