Kinross announces ownership of shares of Allegiant Gold

Rhea-AI Summary

Kinross Gold Corporation has acquired beneficial ownership of 5,018,017 common shares of Allegiant Gold Ltd. via share purchase warrants from an earlier investment completed on March 17, 2022. This investment involved purchasing 10,036,034 units, representing 9.9% of Allegiant's shares, at a total cost of $4,014,414. Currently, Kinross holds approximately 14.0% of Allegiant's total issued shares. This acquisition aligns with Kinross's strategic investment plans, although no immediate purchasing or selling actions are intended. Kinross has no further intentions disclosed regarding its Allegiant investment at this time.

Positive

• Acquisition of 5,018,017 shares of Allegiant enhances Kinross's equity stake to approximately 14.0%.
• Strategic investment potentially strengthens Kinross's position in the gold mining sector.

Negative

• None.

(All dollar amounts are expressed in Canadian dollars, unless otherwise noted.)

TORONTO, Jan. 16, 2023 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (“Kinross” or the “Company”) (TSX: K, NYSE: KGC) announced today that it has acquired deemed beneficial ownership of 5,018,017 common shares of Allegiant Gold Ltd. (“Allegiant”) issuable upon exercise of common share purchase warrants previously acquired by Kinross. The warrants were acquired as part of the previously announced investment in Allegiant completed on March 17, 2022. Pursuant to the investment, Kinross purchased 10,036,034 units of Allegiant, representing 9.9% of the issued and outstanding shares of Allegiant. Each unit was comprised of one common share and one-half of one common share purchase warrant (each, a “Unit”, and collectively, the “Units”). The Units were acquired for a purchase price of $0.40 per Unit, representing an aggregate purchase price of $4,014,414.00. The common shares held represent approximately 9.8% of the currently issued and outstanding Allegiant common shares and the Warrants provide deemed beneficial ownership of common shares representing approximately 4.7% of the currently issued and outstanding Allegiant common shares. Accordingly, as of today Kinross is the deemed beneficial owner of common shares representing approximately 14.0% of the issued and outstanding shares of Allegiant and is therefore required by applicable Canadian securities laws to issue this press release and file a corresponding early warning report.

Kinross acquired the Units as part of a strategic investment in the Issuer. Kinross may or may not purchase or sell securities of the Issuer in the future on the open market or in private transactions, depending on market conditions and other factors. Kinross currently has no other plans or intentions that relate to its investment in the Issuer. Depending on market conditions, general economic and industry conditions, the Issuer’s business and financial condition and/or other relevant factors, Kinross may develop other plans or intentions in the future.

A copy of the early warning report filed by Kinross in connection with the investment will be available on Allegiant’s profile on SEDAR at www.sedar.com. Alternatively, you may contact Luke Crosby, Vice President, Assistant General Counsel and Corporate Secretary at 647-788-4478 to obtain a copy of the report. Kinross is organized under the laws of the Province of Ontario and its head office is located at 25 York Street, 17th Floor, Toronto, Ontario M5J 2V5. Allegiant’s head office is located at 1090 Hamilton Street, Vancouver, British Columbia V6B 2R9.

About Kinross Gold Corporation

Kinross is a Canadian-based global senior gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile and Canada. Our focus is on delivering value based on the core principles of responsible mining, operational excellence, disciplined growth, and balance sheet strength. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).

Media Contact
Victoria Barrington
Senior Director, Corporate Communications
phone: 647-788-4153
victoria.barrington@kinross.com

Investor Relations Contact
Chris 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 in this news release 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. The words “may”, “will”, “plan” or variations of or similar such words and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result and similar such expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates, models and assumptions of Kinross referenced, contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to, statements regarding the ownership and future intentions regarding securities of Allegiant. Forward-looking statements are necessarily based upon a number of assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant uncertainties and contingencies. These uncertainties and contingencies can affect, and could cause, Kinross' actual results to differ materially from those expressed or implied in any forward looking statements made by, or on behalf of, Kinross. 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.

Kinross disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Source: Kinross Gold Corporation

FAQ

What recent acquisition did Kinross Gold Corporation make regarding Allegiant Gold Ltd. shares?

Kinross acquired beneficial ownership of 5,018,017 common shares of Allegiant, increasing their stake to approximately 14.0%.

When was Kinross's investment in Allegiant Gold Ltd. completed?

The investment in Allegiant was completed on March 17, 2022.

How much did Kinross pay for the common share units of Allegiant?

Kinross purchased the units for a total of $4,014,414, at a price of $0.40 per unit.

What percentage of Allegiant's shares did Kinross originally acquire?

Initially, Kinross acquired 9.9% of the issued and outstanding shares of Allegiant.

What are the future intentions of Kinross regarding its investment in Allegiant?

Kinross has stated it may or may not purchase or sell Allegiant securities in the future, depending on market conditions.