Solitario Announces Entering into Costless Collar on Its Kinross Stock Holdings

    DENVER, October 17 /CNW/ - Solitario Resources Corporation (Solitario)
announces that on October 12, 2007 Solitario entered into a Zero-Premium
Collar Hedge (the "Hedge") with UBS AG, London, England, an Affiliate of UBS
Securities LLC (collectively "UBS") whereby Solitario pledged 900,000 shares
of Kinross Gold Corporation ("Kinross") common shares to be sold (or delivered
back to Solitario with any differences settled in cash) in the amounts of (i)
400,000 shares on April 14, 2009 (18 months) for a lower threshold price of no
less than $13.81 per share (the "Floor Price") and an upper threshold price of
no more than $21.77 per share (Cap Price One); (ii) 400,000 shares on April
13, 2010 (30 months) for a lower threshold of the Floor Price and an upper
threshold price of no more than $24.46 per share ("Cap Price Two"); and (iii)
100,000 shares on April 12, 2011 (42 months) for no less than the Floor Price
and an upper threshold price of no more than $27.62 per share ("Cap Price

    The business purpose of the Hedge is to provide downside price protection
of the Floor Price on approximately 900,000 shares of the 1,342,920 shares
Solitario currently owns, in the event Kinross stock drops significantly from
the current price. In consideration for obtaining this price protection,
Solitario has given up the upside appreciation above the Cap Prices discussed
above during the term of the respective tranches. Kinross' quoted closing
price was $16.37 per share on October 12, 2007, the date of the initiation of
the Hedge.

    The Hedge is structured as a European-style synthetic hedge, which allows
for the close of the position of each tranche (the "Termination") of the Hedge
only on the specific dates for each tranche, 18, 30 and 42 months from the
date of entering into the Hedge. UBS will keep any ordinary cash dividends
declared by Kinross on any of the shares subject to the Hedge during the term
of the Hedge. Solitario has the option to satisfy its obligations under the
Hedge upon Termination of each tranche in either cash or Kinross shares. The
market price of Kinross for determining the cash settlement price will be
based upon the volume weighted-average price of Kinross on the Termination
date of each tranche.

    The above description of the Hedge is described more fully in a form 8-K
as filed with the Securities and Exchange Commission today.

    Chris Herald, President and CEO of Solitario stated that the protection
provided on approximately two-thirds of our investment in Kinross, which is
the largest single asset on our balance sheet, gives Solitario excellent
downside protection against that asset while still preserving significant
potential appreciation (with a weighted average capped price of $23.62 on our
hedged Kinross shares), and allowing Solitario to fully participate in all
appreciation related to our non-hedged Kinross shares. Furthermore, this price
protection provides additional confidence that Solitario will have an assured
source of funds to meet our exploration needs for approximately the next four
years at current exploration and expenditure levels.


    Solitario is a gold, silver, platinum-palladium, and base metal
exploration company actively exploring in Brazil, Mexico, Peru and Bolivia.
Solitario has significant business relationships with Newmont Mining, Anglo
Platinum and Votorantim Metais. Solitario has approximately US$22 million in
cash and marketable securities and no debt. Solitario is traded on the
American Stock Exchange (AMEX:  XPL) and on the Toronto Stock Exchange
(TSX:SLR). Additional information about Solitario is available online at

    This press release includes certain "Forward-Looking Statements" within
the meaning of section 21E of the United States Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact,
included herein, including without limitation, statements regarding potential
mineralization and reserves, exploration results and future plans and
objectives of Solitario, are forward-looking statements that involve various
risks and uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements. The recovery of
Solitario's investment in Kinross is subject to many factors beyond the
control of Solitario, including market price changes in the price of Kinross
stock. Development of Solitario's properties are subject to the success of
exploration, completion and implementation of an economically viable mining
plan, obtaining the necessary permits and approvals from various regulatory
authorities, compliance with operating parameters established by such
authorities and political risks such as higher tax and royalty rates, foreign
ownership controls and our ability to finance in countries that may become
politically unstable. Important factors that could cause actual results to
differ materially from Solitario's expectations are disclosed under the
heading "Risk Factors" and elsewhere in Solitario's documents filed from time
to time with Canadian Securities Commissions, the United States Securities and
Exchange Commission and other regulatory authorities. This release also
contains information about adjacent properties on which Solitario has no right
to explore or mine. We advise U.S. investors that the SEC's mining guidelines
strictly prohibit information of this type in documents filed with the SEC.
U.S. investors are cautioned that mineral deposits on adjacent properties are
not indicative of mineral deposits on our properties.

For further information:

For further information: Solitario Resources Corporation President & CEO
Christopher E. Herald, 303-534-1030 or CFO James R. Maronick, 303-534-1030

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