a few years ago this was trading $3 to $4 , takeover at $30 the spec was that this would be taken out by Lundin mining back then, may want to take a look at Nevsun NSU tomorrow

UPDATE 3-Gold miner Kinross to buy Red Back for $7 bln

Thomson Reuters






* Kinross agrees to buy Red Back for around $7 billion

* Kinross to pay C$30.50, a 17 pct premium, for shares
(Adds details about market cap, dilution)

By Michael Erman

NEW YORK, Aug 2 (Reuters) - Gold miner Kinross Gold Corp
said it will buy the 91 percent of Red Back Mining Inc
that it does not already own for around $7 billion to
create one of the world's largest gold miners.

The company said on Monday it will pay around $30.50
Canadian a share in stock and warrants for each Red Back share,
a 17 percent premium to Red Back's current share price of
C$26.02. Kinross already owns about 9.3 percent of the smaller
company.

"We see this as an opportunity to acquire an absolutely
world class asset at a fair price -- it effectively
turbo-charges our growth profile," Kinross Chief Executive Tye
Burt told Reuters.

Red Back owns mines in Mauritania and Ghana, giving Kinross
entry into west Africa. The combined company will have 10 mines
and four development projects in eight countries. Kinross has
mines and projects in Canada, the United States, Brazil, Chile,
Ecuador and Russia.

The combined company's 2010 production would be about 2.6
to 2.7 million gold equivalent ounces. Analyst forecasts place
the company's 2015 gold production at about 3.9 million ounces,
but Kinross said it believes there is significant potential for
Red Back's assets beyond that estimate.

Gold deals have been hot in 2010 as large miners search for
growth and the value for the precious metal has soared to
historically high levels of around $1,200 an ounce.

Kinross has been working toward an acquisition of Red Back
for six months, and became more comfortable with the idea of
the takeover after acquiring its nearly 10 percent stake in
May, Burt said.

The deal would create the fourth largest gold company by
market capitalization, he said, putting it behind Barrick Gold
, Goldcorp Inc , and Newmont Mining .

Australia's Newcrest Mining will likely eclipse
the value of the combined company when it completes its
takeover of Lihir Gold .

CONFIDENT IN GROWTH

Red Back shareholders will hold about 37 percent of the
combined company when the deal closes. Chairman Lukas Lundin
and Chief Executive Richard Clark are expected to join Kinross'
board, the companies said.

Burt asked that shareholders concerned about dilution from
the deal be patient.

"We've shown we have an eye for value and we've done a very
large amount of work," Burt said. "We have a high degree of
confidence in what we've seen, so be patient for 6 to 12 months
as we continue to advance the drilling and technical work. I
think (shareholders) will be excited by the results."

Kinross believes the deal will be immediately accretive on
a net asset value basis, but that Wall Street may disagree.

"The Street, with its numbers, will see it as dilutive
initially. We simply disagree on that, given the work we've had
a chance to do," he said.

He said the deal will boost cash flow when Red Back's
Mauritania mine expands over the next three years.

Kinross hopes to hire as many members of the Red Back
management and operating team as possible, according to Burt.

Under the terms of the deal, Red Back shareholders will
receive 1.778 Kinross common shares plus 0.11 of a Kinross
common share purchase warrant for each Red Back share.

Kinross expects the warrants to be listed on the TSX and be
exercisable for a 4-year term at a price of US$21.30.

The companies said either part could terminate the deal if
they receive an unsolicited superior proposal, subject to the
right of each company to match that offer. Kinross would have
to pay a termination fee of C$250 million, while Red Back's
breakup fee would be C$217 million.
($1=C$1.0229)
(Reporting by Michael Erman; Editing by Bernard Orr and
Richard Chang)