Kinross Gold (TSX: Okay; NYSE: KGC) is shopping for gold explorer Nice Bear Sources (TSXV: GBR; US-OTC: GTBAF) for about US$1.42 billion.
The Canadian miner can pay Nice Bear shareholders an equal of about $29 per share on a totally diluted foundation. They’ve the choice to obtain that in money or as 3.856 Kinross shares.
The deal represents a premium of 26.5% to Nice Bear’s final shut on December 8.
Nice Bear’s Dixie undertaking in northwestern Ontario is taken into account some of the necessary Canadian gold discoveries in fashionable historical past.
The property consists of 9,140 hectares of contiguous claims extending over 22 kilometers. The undertaking is accessible year-round by freeway and is near important infrastructure, together with paved roads, electrical energy and a pure fuel pipeline supplied by the city of Crimson Lake, about 25 km to the northwest.
So far, Nice Bear has accomplished greater than 340,000 meters of drilling in 794 drill holes and recognized 5 high-grade gold discoveries.
“The Dixie undertaking represents an thrilling alternative to develop a doubtlessly top-tier deposit into a big, long-life mine complicated,” Paul Rollinson, Kinross Gold’s CEO mentioned in a information launch.
“Dixie’s closest geological analog, the massive Hemlo gold mine, was traditionally operated by three separate corporations previous to its consolidation and has produced over 20 million ounces of gold in additional than 30 steady years of operation,” Chris Taylor, Nice Bear’s CEO, mentioned within the information launch. “Nice Bear shareholders will now be in a novel place to profit from the potential of the top-tier Dixie undertaking underneath one firm and can keep robust publicity to the undertaking by their Kinross shares.”