Kinross announces sale of Cerro Casale interest
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
www.kinross.com
NEWS RELEASE
Kinross announces sale of Cerro Casale interest
Toronto, Ontario – March 28, 2017 – Kinross Gold Corporation (TSX:K; NYSE:KGC) announced today that it
has agreed to sell its 25% interest in the Cerro Casale project in Chile, and its 100% interest in the Quebrada
Seca exploration project located adjacent to Cerro Casale, to Goldcorp Inc. (“Goldcorp”) for the following
consideration:
• US$260 million in cash, payable at closing (which includes US$20 million for Quebrada Seca);
• US$40 million in cash, payable following a construction decision for Cerro Casale;
• Assumption by Goldcorp of a US$20 million payment obligation due to Barrick Gold Corporation
(“Barrick”) under the existing Cerro Casale shareholders agreement, which is payable when commercial
production at Cerro Casale commences;
• A 1.25% royalty from Goldcorp based on 25% of gross revenues from all metals sold at Cerro Casale and
Quebrada Seca, with Kinross foregoing the first US$10 million.
Additionally, on closing Kinross will enter into a water supply agreement with the Cerro Casale joint venture. After
certain conditions are met, the agreement will provide Kinross with certain rights to access, up to a fixed amount,
water not required by the Cerro Casale joint venture. Kinross expects to use this water for its Chilean assets and
would be responsible for the incremental capital costs to accommodate the supply of water to the Company along
with its pro rata share of operating and maintenance costs.
Kinross expects to use the proceeds from the sale for its organic development projects and to further strengthen
its balance sheet.
The sale is expected to be completed in the second quarter of 2017, subject to customary conditions of closing as
well as the closing of Goldcorp’s acquisition from Barrick of a 25% interest in the Cerro Casale project.
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil,
Russia, Mauritania, Chile and Ghana. Our focus is on delivering value based on the core principles of operational
excellence, balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the
Toronto Stock Exchange (TSX:K) and the New York Stock Exchange (NYSE:KGC).
Investor Relations Contact
Tom Elliott
Senior Vice-President, Investor Relations and Corporate Development
phone: 416-365-3390
Media Contact
Louie Diaz
Director, Corporate Communications
phone: 416-369-6469
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5
p. 2 Kinross announces sale of Cerro Casale interest www.kinross.com
Cautionary statement on forward-looking information
All statements, other than statements of historical fact, contained in this news release, including any information as to the future financial or
operating performance of Kinross, 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 “safe harbor” provisi ons under the United
States Private Securities Litigation Reform Act of 1995 and are based on the expectations, estimates and projections of management as of
the date of this news release unless otherwise stated. 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 significa nt business,
economic and competitive uncertainties and contingencies. The estimates and assumptions of Kinross contained in this news release, which
may prove to be incorrect, include, but are not limited to: (i) the various assumptions set forth herein; (ii) that Kinross will complete the sale of
its interests in Cerro Casale and Quebrada Seca in accordance with, and on the timeline contemplated by, the terms and conditions of the
relevant agreements, on a basis consistent with our current expectations; (iii) that any contingent payment contemplated by the purchase
agreements governing the sale or the royalty will be paid to Kinross, (iv) that a construction decision will be made by the Cerro Casale joint
venture; (v) that the conditions will be met under the water supply agreement to allow Kinross to exercise its rights to access water thereunder;
and (vi) that Kinross will use the proceeds from the sale as described herein. The forward-looking information set forth in this news release is
subject to various risks and other factors which could cause actual results to differ materially from those expressed or implied in the forward-
looking information, including the risk that the sale transaction will not be completed for any reason. Certain of these risks, factors, estimates
and assumptions are described in more detail in Kinross’ most recently filed Annual Information Form in the section e ntitled “Risk
Factors” and the “Risk Analysis” section of our most recently filed Management’s Discussion and Analysis, to which readers a re
referred and which are incorporated by reference in this news release. In addition, all forward -looking statements made in this news
release are qualified by the full “Cautionary Statement” in such Annual Information Form and the “Cautionary Statement on Forward Looking
Information” in such Management’s Discussion and Analysis. These risks, factors, estimates and assumptions are not exhaustive. 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, or to explain any material difference between subsequent actual events and such forward-looking statements, except to
the extent required by applicable law.