Thorunn Howatt
Northern News Services

Yellowknife (June 12/02) - Lupin gold mine could have a new set of owners.

Kinross Gold Corporation, Echo Bay Mines Ltd. and TVX Gold Inc want to combine the three companies and in a separate deal, a 49.9 per cent interest in a joint venture owned by Newmont Mining Corporation.

After Kinross combines with Echo Bay and TVX and after acquiring the TVX NA interest new company will be known as "new Kinross."

It will have market capitalization in excess of $2 billion US; two million ounces per year gold production with total cash costs less than $200 US per ounce as well as 65 per cent of annual production in the United States and Canada.

Echo Bay shareholders will receive 0.52 of a Kinross share for each Echo Bay share. TVX shareholders will receive 0.65 of a Kinross share for each TVX share. At the same time, TVX will get Newmont's TVX NA interest for $180 US million.

Based on the 30-day average trading prices of Kinross on the Toronto Stock Exchange, Echo Bay and TVX prior to the announcement of the combination, the exchange ratios imply a price of $1.81 Cdn per Echo Bay share, representing a 23 per cent premium, and a price of $2.27 Cdn per TVX share, representing a 47 per cent premium.

The new Kinross will have 50 per cent of reserves based in the United States and Canada.