"We believe this is a win-win transaction for both Kinross shareholders and the future of the Fruta del Norte project," said J. Paul Rollinson, Kinross CEO. "The sale further strengthens Kinross’ balance sheet as the Company focuses on its strategic priorities. At the same time, Kinross’ equity position in Fortress could provide it with an opportunity to benefit from the project’s development."
Further to the Company’s news release dated October 21, 2014 announcing the sale, Kinross received 26,156,250 Fortress common shares, issued at a price of C$4.00 per share, resulting in Kinross owning approximately 25.8% of Fortress’ outstanding common shares. The sale was subject to various conditions, including the granting of certain approvals by the Government of Ecuador, which have all been provided.
Additional details regarding the Fortress common shares
Kinross has acquired the common shares of Fortress described above for investment purposes and may or may not purchase or sell Fortress securities in the future on the open market or in private transactions, depending on market conditions and other factors, subject to certain contractual restrictions agreed to with Fortress. Specifically, Kinross has agreed that it will not, subject to certain exceptions, sell the common shares acquired from Fortress as described above until six months following the closing (in respect of 50% of such shares) and twelve months following the closing (in respect of the balance of such shares).
