Wednesday, 10th November 2004 (2474 views)

Canadian mining firm Kinross Gold has revealed it is to purchase a further share in the Rio Paracatu Mineracao, a Brazilian gold mine, which it hopes will considerably boost gold reserves.

The company is going to pay $260 million to acquire the remaining 51 per cent stake in the mine that it doesn't own.

Bob Buchan, President and CEO said: "This transaction will solidify our presence in the region, and is a positive step forward in terms of increasing our reserves and in reducing the number of joint ventures we are involved in.

It is hoped reserves will increase by around 28 per cent, after the share is acquired from current majority owner Rio Tinto.

The mine is a large open pit southeast of the capital of Brazil and will see Kinross become the mine's operator after the deal.

Kinross is a senior gold producer with 13 gold producing properties in six countries, mainly in the Americas.

The deal is still subject to a definitive agreement between Kinross and Rio Tinto.

 

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