By Alan Fein
(AXcess News) New York - Kinross Gold (NYSE: KGC, TSX: K) has made abid to buyout Teryl Resources (TSX-V: TRC; OTCBB: TRYLF) 20% stake inthe Gil joint venture gold property that adjoins Kinross' Fort Knoxmine outside of Anchorage Alaska. Terms of the deal were notdisclosed, though Kinross' CEO Tye Burt had let slip during a miningconference in October that global supplies were dwindling and companieswould need to find more sources. And in this case, Burt didn't have tolook to far with Teryl Resources property just miles from one of thebiggest gold mines in Alaska - Fort Knox.
In an AXcess News feature storypublished October 20 2009, Burt was quoted as saying, "We may be in themidst of a perfect storm in terms of price and industry dynamics ...Globally production has been in decline since the peak of 81 millionounces in 2001 to 77 million ounces last year, and we see that declinecontinuing long term."
Motley Fool's Christopher Barker noted in an earlier storythat month that Kinross was on the hunt for gold properties - orcompanies - it could acquire. Last summer Kinross swallowed upAurelian Resources in a deal valued at $1.2 billion, concluding theacquisition months before Kinross' CEO had inferred that more goldproperties were needed. Dundee Securities had acted as Aurelian'sadvisors and this year alone has been involved in three miningacquisitions.
Recently, Teryl Resources had announced the completion of a 3000foot service road Kinross had funded on the Sourdough Ridge propertythat adjoins the Gil claims. At the time of the announcement, Teryl's shares shot upmore than 6.8% as gold futures set a then-record high of $1111.40.Today, gold set another record, surpassing $1,134.50 per ounce.
The development brought Kinross' total investment in TerylResources' property to $9 million. Recent drilling reports indicatedstrong mine development potential on Sourdough Ridge, which couldsubstantially raise the level of gold reserves and may have been adeciding factor in Kinross' move to acquire the property.
In a telephone interview late Monday afternoon, Teryl ResourcesPresident John Robertson said in commenting on Kinross Gold's offer,"They [Kinross] must be optimistic about the future of the property asit is today."
Robertson would not release any details on Kinross' offer, nor wouldhe speculate on why Kinross was offering to buyout Teryl Resources 20%stake before further drill results were in - saying only that "theboard of directors were reviewing the proposal."