Anyone following the recent rush of
activity in the Yukon, Canada, and especially the progression of drilling by
the lead dog in the area right now (Kaminak Gold)
will be wise to take notice of the news that Kinross Gold, a big player in
the area, has recently raised significant cash which begs speculating on why
they did this.
First we’ll look at Kinross
Kinross Gold Corp (2) (TSX:K)
Shares Issued 1,136,049,292
Last Close 8/15/2011 $16.12
Tuesday August 16 2011 - News Release
Mr. Steve Mitchell reports
KINROSS ANNOUNCES US$1 BILLION UNSECURED DEBT OFFERING
Kinross Gold Corp. has priced a
$1-billion ( U.S. ) offering of debt securities,
consisting of $250-million ( U.S. ) principal amount of its 3.625-per-cent
senior notes due 2016, $500-million ( U.S. ) principal amount of its
5.125-per-cent senior notes due 2021 and $250-million ( U.S. ) principal
amount of its 6.875-per-cent senior notes due 2041. The notes will be
unsecured, senior obligations of Kinross and will be wholly and unconditionally
guaranteed by certain of Kinross's wholly-owned subsidiaries that are also
guarantors under Kinross's amended and restated senior unsecured credit
agreement. The offering is expected to close on August 22, 2011.
Kinross intends to use the proceeds of
the offering for general corporate purposes, including funding for capital
The offering is being made pursuant to
Rule 144A under the Securities Act of 1933 (the "Act") and outside
the United States pursuant to Regulation S under the Act. The notes have not
been and will not be registered under the Act and the notes may not be
offered or sold in the United States absent registration under the Act or the
availability of an applicable exemption from registration requirements.
Offers and sales in Canada will be made only pursuant to exemptions from the
prospectus requirements of applicable Canadian provincial or territorial
securities laws. This news release does not constitute an offer to sell or
the solicitation of an offer to buy any security. We seek Safe Harbor .
I have spoken to numerous people quite
knowledgeable about these matters and they have all to a man asked the
question… “What exactly does Kinross plan to do with this money?”. Keep your eyes open for possible talks of
takeovers in the Yukon district. I am not implying that this is the sole
purpose for the capital raise but given the heightened activity on lands that
Kinross would be more than interested in, it is not out of the realm of
probability that they may be looking at some other asset in the area.
Right now I am heavy in what I consider
to be the “lead dog” of the area, Kaminak
Gold, having gone long at $3.70. I am looking to buy more on any dips. This
shall never be intended to be investment advice. You can read my disclaimer
for more information about that.
Keep in mind too that Kaminak recently drilled four metres
of 74.9 g/t Au at their “Coffee” property in the Yukon. That
news was announced on August 9th. A week later we get a huge capital raise
I’ll keep my eyes and ears open
and report as needed.