Kinross Gold Announced Acquisition of Strategic Ontario Mining Assets

SEATTLE (Scrap Monster): Canadian-based Kinross Gold Corporation announced that it has entered into a definitive agreement with Great Bear Resources Ltd. to acquire all of the latter’s issued and outstanding shares through a plan of arrangement, with an upfront payment of $1.4 billion.

As per the agreement terms, Great Bear shareholders can elect to receive either C$29 in cash or 3.8564 Kinross shares in return for each Great Bear share they hold. This is subject to a pro-ration up to an aggregate cash consideration of $1.1bn or maximum aggregate shares issuable of 95.8 million. In addition, Great Bear shareholders will be eligible for a contingent consideration of up to $46m in the form of contingent value rights.

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The transaction will see acquisition of Great Bear’s flagship Dixie project located in the renowned and prolific Red Lake mining district in Ontario, Canada by Kinross. It must be noted that the Dixie project is one of the most exciting recent gold discoveries globally having the characteristics of a top tier deposit. The asset is likely to become a centrepiece in Kinross’s development portfolio.

J. Paul Rollinson, President and CEO, Kinross said that the addition of a high-quality asset in its home jurisdiction will further bolster its global portfolio and provide long-term tax benefits. The asset has strong untapped upside with numerous avenues for growth, he added