Proactiveinvestors recommends
Additional Information
Market: TSXV
Sector: Gold Mining
EPIC: UW
Underworld Resources
www.underworldresources.com

Underworld Resources is a mineral exploration company focused on expanding its Golden Saddle gold discovery in Canada's Yukon Territory

Full Underworld Resources profile here
Pdf

Kinross Gold Corp to fully acquire Underworld Resources at 36% premium

11th Mar 2010, 4:24 pm
Kinross Gold Corp to fully acquire Underworld Resources at 36% premium

Kinross Gold Corp (TSX: K, NYSE: KCG) has agreed to acquire the shares in Underworld Resources (TSX-V: UW) not already owned by Kinross.

Kinross will offer 0.141 of its share and C$0.01 in cash for each share in Underworld, making for a total consideration of C$2.62 per share, based on the March 10, 2010 closing price of C$18.54 per Kinross common share on the Toronto Stock Exchange (TSX). The transaction values the fully-diluted share capital of Underworld at approximately C$139.2 million.

The offer represents a premium of 36% to Underworld’s closing price yesterday and a 50.2% premium based on its average volume weighted prices over the 20 trading days ended 10 March 2010.

Underworld’s board has already recommended its shareholders, directors and management team to accept the offer with the conclusion of a definitive support agreement expected by 15 March 2010. The company's key asset is the White Gold project, located in the Tintina gold belt, approximately 95 km south of Dawson City, Yukon Territory, Canada.

“The Kinross offer brings substantial technical and financial resources to the White Gold property which will further rapidly advance the project. We feel the Kinross offer provides immediate value to our shareholders,” said Underworld chairman Michael Williams.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.