James Telfser discusses gold stocks
TORONTO -- Kinross Gold Corp. has signed an agreement to buy Great Bear Resources Ltd. and its Dixie project in northern Ontario in a deal valued at $1.8 billion in cash and shares.
The transaction also includes a contingent payment in connection with the announcement of commercial production at the Dixie project, provided that at least 8.5 million gold ounces of measured and indicated mineral resources are disclosed.
Kinross chief executive Paul Rollinson said the Dixie project is an exciting opportunity to develop a potentially top tier deposit into a large, long-life mine complex.
Under terms of the deal, Great Bear shareholders will receive $29 in cash or 3.8564 Kinross shares per Great Bear share, with limits placed on both choices. Shareholders will also receive one contingent value right per Great Bear common share equal to 0.1330 of a Kinross share in connection with the Dixie project.
Great Bear shares closed at $22.93 on the TSX Venture Exchange on Thursday.
The deal, which requires shareholder approval, is expected to close in the first quarter of next year.