Kinross Gold Corp. completed the previously announced plan of arrangement to acquire all of the issued and outstanding shares of Great Bear Resources Ltd. “The closing of the acquisition of Great Bear Resources represents a milestone for Kinross as we advance our future growth strategy,” Kinross Gold President and CEO J. Paul Rollinson said.
The exploration and development strategy will start immediately, including the goal of drilling 200,000 meters (m) this year. “We aim to further define the asset’s untapped potential and unlock the significant value we see from its numerous avenues for growth,” Rollinson said. “We also look forward to working with the Wabauskang and Lac Seul first nations and local communities as we advance our development strategy.”
Great Bear shareholders were provided the right to elect to receive C$29 in cash for each Great Bear common share or 3.8564 Kinross common shares per Great Bear share, both subject to pro-ration to a maximum cash consideration of approximately US$1.1 billion and a maximum of 80,773,353 Kinross shares.
The arrangement also includes a payment of contingent consideration in the form of one contingent value right (CVR) per Great Bear share that may be exchanged for 0.1330 of a Kinross share per Great Bear share. The CVRs are transferable and have a term of 10 years.
In aggregate, Kinross will pay approximately C$1.35 billion in cash and issue 49.3 million Kinross shares and 59.3 million CVRs to Great Bear security holders.