Kinross completes definitive agreement with Government of Mauritania
July 15 2021 - 7:48AM
Kinross Gold Corporation (TSX:K; NYSE:KGC) (“Kinross” and the
“Company”) is pleased to announce today that it has signed a
definitive agreement (“Agreement”) with the Government of
Mauritania (“Government”) to provide enhanced certainty on Tasiast
economics.
The Agreement confirms the same key terms of the
agreement in principle signed on June 15, 2020, including:
- The continuation of tax exemptions
on fuel duties1.
- The repayment by the Government to
Kinross of approximately $40 million in outstanding VAT
refunds2.
- The payment by the Company to the
Government of $10 million to resolve disputed matters.
- The introduction of an updated
escalating royalty structure1 tied to the gold price that aligns
with current Mauritanian mining legislation and is comparable to
other royalties in the region.
- The nomination of two observers by
the Government to the Board of Directors of the Kinross subsidiary
operating the Tasiast mine.
Mauritania’s Minister of Petroleum, Mines and
Energy, Abdessalem Ould Mohamed Saleh, reiterated the Government’s
solidarity and support for the Company during his two-day visit to
Tasiast in late June 2021. The Minister met with Kinross officials
and toured the mine, including the area of the recent mill fire,
and was briefed on the progress of the 24k expansion project. The
Company and Government are focused on the goal of restarting
milling operations at Tasiast and are prioritizing efforts and
processes to achieve this shared objective.
Tasiast Sud is not included in this simplified
Agreement and is not part of the 24k expansion project, Tasiast’s
current life of mine production plan and Kinross’ mineral reserve
and resource estimates. Kinross and the Government will continue to
focus on the shared goal of restarting the Tasiast mill and
discussions respecting the prospective Tasiast Sud area are
expected to continue.
“We are pleased to finalize the balanced
agreement with the Government of Mauritania to further strengthen
our longstanding and constructive relationship,” said J. Paul
Rollinson, Kinross Gold President and CEO. “We look forward to
continue delivering strong results at Tasiast for the benefit of
both Kinross and Mauritania.”
“The completion of this agreement is a testament
to the quality of the strategic partnership between the Government
of Mauritania and Kinross. The agreement is also indicative of the
Government’s commitment and focus on attracting responsible,
experienced and long-term private sector partners in Mauritania to
carry out projects that advance the country’s development and
provide benefits to its people,” said Minister Saleh.
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining
company with mines and projects in the United States, Brazil,
Russia, Mauritania, Chile and Ghana. Our focus is on delivering
value based on the core principles of operational excellence,
balance sheet strength, disciplined growth and responsible mining.
Kinross maintains listings on the Toronto Stock Exchange (symbol:K)
and the New York Stock Exchange (symbol:KGC).
Media Contact Louie DiazVice-President,
Corporate Communicationsphone:
416-369-6469louie.diaz@kinross.com
Investor Relations ContactChris Lichtenheldt
Vice-President,
Investor
Relations phone:
647-821-1736 chris.lichtenheldt@kinross.com
Cautionary statement on forward-looking
information
All statements, other than statements of
historical fact, contained or incorporated by reference in this
news release including, but not limited to, any information as to
the future financial or operating performance of Kinross,
constitute “forward-looking information” or “forward-looking
statements” within the meaning of certain securities laws,
including the provisions of the Securities Act (Ontario) and the
provisions for “safe harbor” under the United States Private
Securities Litigation Reform Act of 1995 and are based on
expectations, estimates and projections as of the date of this news
release. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Forward-looking statements are provided for the purpose of
providing information about management’s expectations and plans
relating to the future. All of the forward-looking statements made
in this news release are qualified by these cautionary statements
and those made in our other filings with the securities regulators
of Canada and the United States including, but not limited to, the
cautionary statements made in the "Risk Factors" section of our
Annual Information Form dated March 30, 2021 and the "Risk
Analysis" section of our full-year 2020 and first-quarter 2021
Management’s Discussion & Analysis. These factors are not
intended to represent a complete list of the factors that could
affect Kinross. Kinross disclaims any intention or obligation to
update or revise any forward-looking statements or to explain any
material difference between subsequent actual events and such
forward looking statements, except to the extent required by
applicable law.
The technical information about the Company’s
mineral properties contained in this news release has been prepared
under the supervision of Mr. John Sims who is a “qualified person”
within the meaning of National Instrument 43-101. Mr. Sims was an
officer of Kinross until December 31, 2020. Mr. Sims remains the
Company’s qualified person as an external consultant.
Source: Kinross Gold Corporation
1 The fuel tax exemption and updated royalty
structure were effective on July 1, 2020. 2 The VAT refund payments
are scheduled over a five year period.
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