http://www.elcomercio.com/noticiaEC....

Kinross buys 80.8% of the operations of Aurelian

The transaction is valued at USD 960 million and includes most of the shares of Aurelian.


The Canadian Kinross acquired the 80.8% of shares in the Canadian Aurelian also resourses. A transaction which basically covers the acquisition of a major mining project in Ecuador.

"For us it is very positive news, we know Kinross for more than two years, there is convergence of values and interests," said Dominic Channer, chairman of Aurelian in Ecuador.

The transaction, valued at some U.S. $ 960 million, was made public yesterday, through a communique to the Toronto Stock Exchange in Canada, where both companies made their transactions.

In so doing, Kinross, with operations in the U.S., Chile, Brazil and Russia, will take control of Aurelian within 30 or 60 days.

Aurelian operating in Ecuador since 2001 and is in charge of the project called Golden Fruit North. This is one of four mining projects star
Government and is currently under exploration.

The stock transaction does not require an authorization by the Ecuadorian State, unlike the contracts in oil field, where it becomes compulsory.

In March this year, Aurelian received an acknowledgement of the Prospector & Developers Association of Canada (PDAC), in Toronto, who have made the largest discovery of gold in the world broadcast last year.

The initial estimate of its reserves in Ecuador is 13.7 million ounces of gold and 22.3 million ounces of silver. Yesterday, gold was trading on USD 796 an ounce.

The figure for reserves is important for Kinross, which now produces two million ounces of gold per year in the world. Reservations Northern Fruit Project joined the 47 million ounces of gold which today owns the buyer.

However, the bid submitted to Aurelian, last July, has generated concern among shareholders of Kinross, because of the atmosphere of legal uncertainty that lives Ecuador.

This is due to the new Mining Law that is under analysis and to draft new Constitution that will go to referendum on September 28 next.
The Vice President of External Affairs of Kinross for South America, Jose T. Letelier, indicated that while there is uncertainty over the new Mining Law, "we hope and trust that the Government of Ecuador will provide a framework for mineral development."

"From what we know so far, this is a law with which we feel perfectly comfortable to mining in Ecuador."

For the new draft constitution, Letelier said that this arouses no greater concern. "We can operate if (the Constitution) is interpreted in a rational manner."

The mining adviser of the Ministry of Petroleum, Javier Cordova, indicated that the merger Kinross-Aurelian "is an operation outside the government's decision therefore does not require authorization. However, it is a positive signal on confidence in the country. "

About Kinross

The company Kinross is a mining company with headquarters in Canada. Until three or four years ago was a small firm, with operations primarily in Chile. Then began a process of growth. Today it operates in Brazil, Chile, USA and Russia.

This signature is 5 000 employees in its operations around the world.

Kinross bought 108 524 181 shares of Aurelian, ie 80.8% of the company.