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KINROSSAnnual Report 2009143NOTES TO THE AUDITED CONSOLIDATEDFINANCIAL STATEMENTS (continued)For the years ended December 31, 2009, 2008 and 2007(in millions of United States dollars)19. Contingencies (continued)Mineracao Serra Grande, S.A. (‘‘MSG’’) which owns the Crixás mine, the Company’s 50% joint venture with AnglogoldAshanti, received two tax reassessments since November 2003 from the Minas Gerais State and Goias State taxauthorities. The reassessments disallowed the claiming of certain sales tax credits and assessed interest and penaltiesof which the Company’s 50% share totals approximately $8.9 million (December 31, 2008 – $6.2 million). The Companyand its joint venture partner believe that this reassessment will be resolved without any material adverse effect on itsfinancial position, results of operations or cash flows. This reassessment relates to the Crixás operating segment.In December 2007, the Company’s 100% owned Brazilian subsidiary, Kinross Participacoes Ltda. received a taxassessment from the Brazilian Federal tax authorities in the amount of $126.5 million (December 31, 2008 –$88.1 million), including penalties and interest in respect of alleged income taxes not withheld from a third party. TheCompany has appealed this assessment and believes that it has reasonable defences to the assessment. The Companyis pursuing its indemnity rights from the third party in respect of the assessment.In September 2005, MSG received assessments relating to payments of sales taxes on exported gold deliveries from taxinspectors for the State of Goias. The Company’s share of the assessments is approximately $46.7 million(December 31, 2008 – $34.3 million). The counsel for MSG believes the suit is in violation of Federal legislation on salestaxes and that there is a remote chance of success for the State of Goias. The assessment has been appealed. Thisreassessment relates to the Crixás operating segment.In October 2006, MSG received an assessment from the State of Goias tax authorities relating to remittance of goldfrom Crixás to Nova Lima in Minas Gerais for export purposes. Since May 2006, the Goias State signed an authorization(TARE) to this procedure. The Company’s share of this assessment is approximately $28.7 million (December 31,2008 – $21.1 million). The Company and its joint venture partner believe that this reassessment will be resolved withoutany material adverse affect on its financial position, results of operations or cash flows.20. Subsequent eventsAgreement to acquire the Dvoinoye deposit and the Vodorazdelnaya propertyKinross has now signed a definitive purchase agreement respecting the transaction announced on January 20, 2010 toacquire the high-grade Dvoinoye deposit and the Vodorazdelnaya property, both located approximately 90 km north ofKinross’ Kupol operation in the Chukotka region of the Russian Far East. Kinross plans to develop Dvoinoye as anunderground mine and process ore from Dvoinoye at the existing Kupol mill, pursuant to an ore purchase agreement withKinross’ 75% owned Chukotka Mining and Geological Company, the owner of the Kupol mine. Kinross expects theacquisition to leverage its existing Kupol facilities by eliminating the need for construction of an additional processingplant, and allowing for blending of Kupol ore with higher-grade Dvoinoye ore.The transaction entails the indirect acquisition of 100% of the participatory interests in Northern Gold LLC andRegionruda LLC, the owners of the Dvoinoye and Vodorazdelnaya exploration and mining licenses. The total purchaseprice is $368 million, comprising $165 million in cash and approximately 10.56 million newly issued Kinross shares (witha market value of $203 million, as of market close on January 19, 2010). The shares to be issued by Kinross will besubject to a minimum hold period of four months after closing. The selling entities, who are related to Millhouse LLC, haveexpressed their intention to remain shareholders of Kinross for the foreseeable future.Kinross expects to complete its due diligence on the transaction in March 2010, and expects the transaction to close bythe third quarter of 2010.