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Tuesday, October 21, 2014

Kinross to sell halted Ecuador gold project to Lundin company, (NYSE: KGC)

Kinross Gold Corp has agreed to sell its halted Fruta del Norte gold project in Ecuador to a company belonging to the Swedish-Canadian Lundin family for $240 million, Kinross and the company, Fortress Minerals Corp , said on Tuesday.Toronto-based Kinross acquired the project in 2008 with its $1.2 billion friendly takeover of Aurelian Resources, and once called it "one of the most exciting gold discoveries of the past 15 years."But last year it suspended work on the gold project, Ecuador's largest, saying the government had refused to compromise over a 70 percent windfall tax. Last June Kinross took a $720 million charge on the project and has been looking to sell it.The government of Ecuador has indicated its support for the transaction, Kinross said.

Kinross Gold Corporation (Kinross) is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of gold-containing ore, and reclamation of gold mining properties. Shares of KGC fell by 1.69% or $-0.05/share to $2.90. In the past year, the shares have traded as low as $2.87 and as high as $5.44. On average, 9788100 shares of KGC exchange hands on a given day and today's volume is recorded at 16556895.