Kinross Unit Acquires Two Hydroelectric Power Plants In Brazil - Quick Facts

(RTTNews) - Kinross Gold Corp. (K.TO, KGC) announced that its subsidiary, Kinross Brasil Mineraçao, has agreed to acquire two hydroelectric power plants in Brazil from a subsidiary of Gerdau SA (GGB) for $257 million. The two plants are expected to secure a long-term supply of power for Kinross' Paracatu mine, resulting in lower production costs over the life of mine.

Kinross expects to fund the acquisition by pursuing debt financing of approximately $200 million, with the balance from existing liquidity. The acquisition is expected to allow Kinross to significantly lower operating costs at Paracatu by eliminating approximately 70% of future power purchases.