Kinross Gold to Acquire Great Bear Resources for $142 Billion
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Kinross Gold has agreed to acquire Great Bear Resources, a publicly-listed Canadian gold exploration company, for an upfront consideration of C$1.8 billion ($1.42 billion).
Great Bear is focused on advancing its fully-owned Dixie gold exploration project in Northwestern Ontario, Canada. The Dixie project is made up of 9,140ha of contiguous claims that span over 22km. It is said to have a year-round accessibility to highway. The project is located in proximity to major infrastructure provided by the Red Lake town, located nearly 25km to the northwest.
The other assets of Great Bear include Sobel, Pakwash, and the Red Lake North properties, all located in the Red Lake District in Ontario.
“The Dixie project represents an exciting opportunity to develop a potentially top tier deposit into a large, long-life mine complex. In addition to the prospect of developing a quality, high-grade open pit mine, we also believe that a significant portion of the asset’s value is its longer-term potential, which includes the view of a sizeable underground operation,” said J. Paul Rollinson, Kinross’ president and CEO.
“Kinross has the strong technical expertise and experience to successfully advance the project from exploration to development and unlock considerable value for our shareholders. Our extensive due diligence reinforced the scarcity of an asset of this quality and value. The Dixie project has multiple high-potential mineralized zones which remain open along strike and at depth, and we are confident that the asset has strong untapped upside with numerous avenues for growth,” added Rollinson.
“The Dixie project is ideally located in the renowned Red Lake mining district in Northern Ontario near established infrastructure and in a province with a low-carbon energy grid. We look forward to building strong relationships with the Wabauskang and Lac Seul First Nations and will work with them to ensure that the project delivers sustainable benefits to their communities and respects their way of life,” said Rollinson.
“Kinross first set foot on the Dixie property three years ago, and has closely monitored the discovery and growth of each successive gold discovery Great Bear has made. With extensive drilling now completed at Dixie, both companies have a shared vision of the clear potential for a multi-deposit mine complex consisting of a potential high-grade open-pit mine and a long-life underground mine,” said Chris Taylor, Great Bear’s president and CEO.
“As Great Bear’s track record of continuous discovery shows, the Dixie project hosts a prolific gold system that remains completely unconstrained and open to extension. In the near-term, with over 80 percent of the property unexplored, our shareholders will continue to have exposure to ongoing advanced project development and extensive exploration upside in the lead-up to planned production,” added Taylor.
“Of high importance to Great Bear is Kinross’ history of strong Indigenous community relationships and industry recognition as a leader in sustainability and environmental stewardship. Our partners at the Wabauskang and Lac Seul First Nations will benefit from Kinross’ deep operational experience, excellent operational track record and headquarters in Ontario. Kinross is committed to ensuring the project provides lasting socio-economic benefits to the local area and the shared Canadian identity and residence in the same province will help facilitate close ties between the company and the project’s local communities,” said Taylor.
Upon closing of the transaction, Kinross will continue to honor the exploration agreements signed with the Wabauskang and Lac Seul First Nations who have traditional territorial claims in the area. Kinross had a constructive first meeting with the chiefs of both First Nations and looks forward to building positive and strong relationships with their communities through meaningful dialogue and consultation.
Kinross recognizes that respect, collaboration and consideration for First Nations is central to the company’s license to operate in the area and will prioritize developing the project in a manner that honours Indigenous rights and brings long-term socio-economic benefits to the area. Consistent with how Kinross develops all of its projects around the world, the company is committed to ensuring that its operations leave a lasting and positive legacy and will take a life of mine approach to the design and planning of the project to minimize environmental impacts.
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile, and Ghana. Its focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth, and responsible mining.
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