By Alan Fein

(AXcess News) New York - Shares of Underworld Resources (TSX.V: UW) soared Thursday in late morning trading in Toronto, rising more than 32 per cent, after Kinross Gold (NYSE: KGC; TSX: K) made a C$139 million offer to buyout shareholders at $C$2.62 per share.

Kinross announce the acquisition proposal just minutes after the opening bell in Toronto.

Micro Cap News broke the story, noting that Kinross' focus was on Underworld Resources' Tintina Property in Canada's Yukon Territory located 95 km south of Dawson City.  Kinross CEO Tye Burt said, "The offer will provide Underworld shareholders with immediate value."

Underworld Resources' Chairman Michael Williams swooned saying, "The Kinross Offer brings substantial technical and financial resources to the White Gold property which will further rapidly advance the project."

Underworld recently announced the initial resource estimation for the Golden Saddle and Arc Deposits. The resource at Golden Saddle includes 1,004,570 ounces at a grade of 3.2 g/t Au in an indicated category, with an additional 407,413 ounces of inferred resources at an average grade of 2.5 g/t Au. At the Arc Zone, the initial resource includes 170,470 ounces at an average grade of 1.2 g/t Au in the inferred category.

The Company's White Gold Trend hosts the Golden Saddle and Arc Deposits which are the key focus of Kinross' plan of acquisition, assuming the shareholders of Underworld Resources accept the C#2.62 per share offer, which is being made in the form of Kinross Gold shares, offering 0.141 shares of Kinross for every UW share - plus one cent in cash.

The Kinross Gold acquisition offer values Underworld Resources at C$139.2 million and while a 32% premium to market price, the more recent promise of Underworld Resources's plan to expand discovery of its White Gold Trend may have prompted Kinross Gold to make its move before further drilling expanded the micro cap gold mining exploration company's value, making the premium more in favor of Kinross, though by the tone of Williams' statement about the offer, it is unlikely that shareholders will say "no."