SolGold - Re: SOLG Stream Log - A company controlled by Sweden’s...

A company controlled by Sweden’s Lundin family agreed to buy Kinross Gold Corp. (K)’s idled Fruta del Norte gold project in Ecuador for $240 million and will change its name to Lundin Gold Inc. Fortress Minerals Corp. (FST/H) plans to raise about C$250 million ($223 million) in an equity sale to fund the cash-and-stock purchase and capitalize the company, it said in a statement today. Kinross, Canada’s third-largest gold producer by revenue, will receive $100 million to $190 million in cash, depending on the net proceeds of the financing, and the rest of the purchase price will be paid in Fortress shares, the Toronto-based miner said in a separate statement. Kinross took a $720 million charge in 2013 when it decided to halt development of Fruta del Norte as Ecuador sought to increase taxes and after gold prices declined. The company, which has operations in the Americas, Russia and West Africa, acquired the project when it agreed to buy Aurelian Resources Inc. for C$1.2 billion in 2008. The Lundin Family Trust has subscribed for as much as $100 million of Fortress’s equity offering, the companies said. The government of Ecuador has indicated its support for the Fruta del Norte sale, which is expected to be completed by mid-December, the companies said. To contact the reporter on this story: Liezel Hill in Toronto at [email protected] To contact the editors responsible for this story: Simon Casey at [email protected] Steven Frank, Carlos Caminada