Kinross Acquires Dixie Project for $ 1.4 Billion | Mining

Kinross Gold Corp. announced on December 8 that it had reached an agreement with Great Bear Resources to acquire the Dixie flagship project from Great Bear in the Red Lake mining district of Ontario, Canada. Kinross will acquire all of the issued and outstanding shares of Great Bear. Kinross agreed to an upfront payment of around $ 1.4 billion. 60-75% of that will be cash and the remainder will be Kinross shares.

The deal also includes a contingent payment worth approximately $ 46 million payable when Kinross makes a public announcement of commercial production at Dixie, if at least 8.5 million ounces of gold from measured mineral resources and indicated are disclosed.

Kinross, headquartered in Toronto, Ontario, owns the Round Mountain and Bald Mountain mines in Nevada, as well as mines in Alaska, Brazil, West Africa and Russia.

“The Dixie Project is one of the most exciting recent gold discoveries in the world, and extensive drill results have shown characteristics of a leading deposit,” said a press release from Kinross.

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“Over the past few years, we have reviewed hundreds of opportunities, including all opportunities in Canada,” Kinross President and CEO J. Paul Rollinson said in a presentation on the transaction. Great Bear. “We believe this is an excellent transaction for our shareholders.”

“We’ve been looking at this asset since 2018,” Rollinson said. “And with the recent confirmation of our perspective on the potential of Dixie, we believe the time has come to build the asset into our portfolio.”

“We believe that significant value remains to be unlocked through future exploration drilling, particularly in the underground extensions below the surface mine,” said Rollinson. “Exploration results to date, from over 700 holes and 340 kilometers of drilling, suggest a prolific gold system that remains free and open for extension, with over 80% of the property still unexplored.

“This project showcases our strengths as we can leverage our expertise in project development, both surface and underground, as well as our proven track record of operating leading assets. Dixie will be a great choice, and we are excited about its potential to become a vital asset that should support our production for the long term. “

“We look forward to building strong relationships with the Wabauskang and Lac Seul First Nations and will work with them to ensure the project provides lasting benefits to their communities and respects their way of life,” Rollinson said in the statement. Press.

“The Kinross team is very impressive,” said Chris Taylor, President and CEO of Great Bear, during the presentation. “They have the technical expertise in the open and underground, the development capacity and the financial strength to make Dixie a priority for growth. I am excited about the potential for him to become a leading Canadian asset to the company.

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