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 Gold’s release:

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 expenditures.

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 from Kinross.

I’ll keep my eyes and ears open and report as needed.