A major mining deal impacting the Red Lake area.
Kinross Gold Corporation has entered into a binding agreement with Great Bear Resources to acquire all outstanding shares of Great Bear.
Kinross has agreed to an upfront payment of approximately $1.8 billion Canadian, representing $29 per Great Bear common share.
Officials with Kinross say the Dixie project, 25 kilometres southeast of Red Lake, is one of the most exciting recent gold discoveries globally and extensive drilling results have shown the characteristics of a top tier deposit.
They envision a mine complex with an initial quality, high-grade open-pit mine, with potential upside for a longer-term, sizeable underground operation.
If approved Kinross plans to undertake a comprehensive exploration and development program at the Dixie site.
The project has significant exploration upside potential, with 80% of the property unexplored.
Company officials say it hosts a prolific gold system and has high-potential mineralized zones remaining open along strike and at depth, with multiple avenues to unlock potential.
To date, Great Bear has completed more than 340,000 metres of drilling in 794 drill holes and has identified five high-grade gold discoveries.
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana.
