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Kinross and Goldcorp close their asset swap deals for Chilean and Canadian mines
Fri Dec 21, 6:08 PM
The Canadian Press

http://ca.news.finance.yahoo.com/s/21122007/2/biz-finance-kinross-goldcorp-close-asset-swap-deals-ch...

By The Canadian Press

VANCOUVER - Kinross Gold Corp. (TSX: K.TO) of Toronto and GoldCorp. (TSX: G.TO) of Vancouver have closed their previously announced swap of assets in Ontario and South America consolidating operations in the two gold mining regions.

The two companies said late Friday they had finalized a transaction that will see Kinross acquire Goldcorp's 50 per cent ownership of the La Coipa mine and become full owner and operator of the project in northern Chile.

In return, Goldcorp will acquire Kinross' s 49 per cent share of the Porcupine gold mines in northeastern Ontario and its 32 per cent share of the Musselwhite gold mine in northwestern Ontario.

Goldcorp is also paying Kinross about $204 million in cash.

Kinross said the La Coipa acquisition strengthens the Toronto company's position in Chile's Maricunga district, a core area where the miner already operates the Maricunga mine.

"This transaction strengthens our strategic position in Chile and adds to our growth and development opportunities in a highly prospective region," said Tye Burt, president and CEO of Kinross.

"It also increases ownership and operating control of our core mines, and reduces costs, consistent with Kinross' disciplined strategy to optimize low-cost, high-margin production."

Kinross is the third-largest primary gold producer in North America by reserves. With mines in the United States, Brazil, Russia and Chile, the company has about 4,500 employees.

In trading Friday on the TSX, Kinross shares rose $1.54 to close at $17.99, a gain of 9.4 per cent in trading of more than 10.9 million shares.

Goldcorp shares rose $1.21 to close at $32.08, a gain of 3.9 per cent in trading of more than 5.3 million shares.