RACHELLE YOUNGLAI
RTGAM



Kinross Gold Corp., Iamgold Corp., Goldcorp Inc. and other Canadian gold miners are lining up to look at AngloGold Ashanti Ltd.'s prized mine in Colorado, according to people familiar with the matter.

Bank of Montreal is running the sale of AngloGold's Cripple Creek & Victor mine and about a dozen gold mining players have signed confidential agreements to look at the operations, the sources said.

South Africa-based AngloGold is struggling to reduce its $3-billion debt load. Its chief executive officer said this week that the company is considering a joint venture or sale of a "key operating asset" to raise cash, though he did not specify which mine.

Although Cripple Creek is not the crown jewel of gold mines, it is generating excitement among Canadian gold miners because of its deep gold reserves and the fact it is located in a relatively mining-friendly jurisdiction.

Kinross and Iamgold are particularly interested in the mine, sources said. Both Toronto-based companies are under pressure to improve their portfolios, and both have the capital to make a bid.

Kinross recently killed plans to expand its mine in the Mauritanian desert, freeing up extra funds. The company, which has about $1-billion in cash, is facing declining production from its best mines in Russia. Its stock has taken a hit due to investor concerns over the political tensions between the West and Russia.

Iamgold raised $500-million from the sale of a non-precious metal mine last year and has said it is looking for another mine to help reduce overall costs.

Others that were invited to look at the mine include Barrick Gold Corp., though the world's largest gold producer is not expected to make a bid given that it is looking for ways to reduce its debt.

AngloGold has not yet stipulated a price and it is not clear whether the company is seeking an outright sale, the sources said. The deadline for the first round of bidding is early March, according to one person familiar with matter.

The Globe and Mail first reported the sale of Cripple Creek last week.

AngloGold's decision to market Cripple Creek comes five months after the South African miner abruptly killed plans to hive off its international operations and sell $2-billion in shares.

Iamgold, Kinross, Barrick and BMO declined comment. Goldcorp did not immediately respond to a request for comment.