Kinross announces ownership of shares of Eminent Gold Corp.

Rhea-AI Summary

Kinross Gold Corporation (NYSE: KGC) has acquired 7,574,237 units of Eminent Gold Corp. at $0.40 per unit, for a total investment of $3,029,694.80. Each unit consists of one common share and half a share purchase warrant. The warrants allow holders to purchase additional shares at $0.70 per share within 24 months.

Through this acquisition, Kinross now owns approximately 9.9% of Eminent's outstanding shares on a non-diluted basis and 14.15% on a partially diluted basis. Kinross has agreed to a standstill provision limiting its ownership to 19.9% on a partially diluted basis. Prior to this investment, Kinross held no securities in Eminent.

Positive

• Strategic investment in Eminent Gold Corp. expands Kinross's portfolio exposure
• Potential for additional share acquisition up to 19.9% ownership
• Warrants provide opportunity for increased ownership at fixed price of $0.70 per share

Negative

• Significant cash outlay of over $3 million in current market conditions
• Investment subject to market risks and gold price fluctuations

Insights

Mining Industry Analyst

Kinross acquires 9.9% stake in Eminent Gold for $3M CAD through strategic private placement with future purchase options via warrants.

Kinross Gold has established a 9.9% ownership position in junior mining company Eminent Gold through a $3,029,694.80 private placement. This initial stake acquisition represents Kinross's first investment in Eminent, purchasing 7,574,237 units at $0.40 per unit, with each unit comprising one common share and half a warrant. The warrant structure is particularly telling - each whole warrant allows Kinross to acquire additional shares at $0.70 within a 24-month period, representing a 75% premium to the current unit price.

The transaction's structure reveals a measured approach by Kinross. They've secured a meaningful initial position while obtaining warrants that provide optionality for increasing their stake if Eminent's projects demonstrate value. On a partially diluted basis (assuming all warrants are exercised), Kinross would hold 14.15% of Eminent's outstanding shares.

Notably, Kinross has negotiated a standstill agreement capping their ownership at 19.9% on a partially diluted basis. This mechanism typically indicates a strategic investment rather than acquisition intentions, allowing Kinross to maintain significant influence without triggering formal takeover requirements.

This transaction represents a standard industry practice where major producers gain exposure to early-stage exploration projects through strategic investments in junior mining companies. For Kinross, this $3M investment is relatively immaterial to their overall financial position but provides exploration optionality without committing to direct project development costs or risks.

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

TORONTO, May 05, 2025 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (“Kinross” or the “Company”) (TSX: K, NYSE: KGC) announced today that it has acquired an aggregate of 7,574,237 units (each, a “Unit”) of Eminent Gold Corp. (“Eminent”) at a price of $0.40 per Unit and an aggregate purchase price of $3,029,694.80 (the “Acquisition”), pursuant to the closing of a private placement by Eminent of 10,711,900 Units. Each Unit consisted of one common share in the capital of Eminent (each, a “Share”) and one-half of one Share purchase warrant (each whole warrant being a “Warrant”). Each Warrant shall entitle the holder thereof to acquire one Share at an exercise price of $0.70 per Share for a period of 24 months from their issuance.

Prior to the Acquisition, Kinross did not own or have control over any securities of Eminent. As a result of the Acquisition, Kinross acquired an aggregate of 7,574,237 Shares and 3,787,118 Warrants, representing approximately 9.9% of the issued and outstanding Shares on a non-diluted basis and 14.15% of the issued and outstanding Shares on a partially diluted basis.

An early warning report filed by Kinross in connection with the investment will be available on Eminent’s SEDAR+ profile at www.sedarplus.ca. Alternatively, you may contact Luke Crosby, Senior Vice President, 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. Eminent’s head office is located at 1055 West Georgia Street, 1500 Royal Centre, PO Box 11117, Vancouver, British Columbia V6E 4N7.

Kinross acquired the Units for investments purposes. Kinross may, from time to time, increase or decrease its investment in the Issuer through market transactions, private placements, treasury issuances or otherwise, including pursuant to the terms of the Investor Rights Agreement between Kinross and the Issuer. Kinross has agreed to a standstill at 19.9%, calculated on a partially diluted basis.

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
David Shaver
Senior Vice-President, Investor Relations and Communications
phone: 416-365-2854
InvestorRelations@kinross.com

Source: Kinross Gold Corporation

FAQ

What percentage of Eminent Gold Corp does Kinross Gold (KGC) now own?

Kinross Gold now owns 9.9% of Eminent Gold Corp's shares on a non-diluted basis and 14.15% on a partially diluted basis.

How much did Kinross Gold (KGC) pay for its stake in Eminent Gold Corp?

Kinross Gold paid CAD $3,029,694.80 for 7,574,237 units at $0.40 per unit.

What are the terms of the warrants in Kinross Gold's (KGC) Eminent Gold investment?

Each warrant allows Kinross to purchase one additional share at $0.70 per share within 24 months of issuance.

What is the maximum ownership stake Kinross Gold (KGC) can acquire in Eminent Gold?

Kinross has agreed to a standstill provision limiting its ownership to 19.9% on a partially diluted basis.