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DECEMBER 20, 2021—JANUARY 9, 2022 / VOL. 107 ISSUE 26 / GLOBAL MINING NEWS · SINCE 1915 / $5.25 / WWW.NORTHERNMINER.COM
Kinross Gold to acquire Great Bear Resources for $1.8B M&A
| Gold major has looked at junior since 2018
Osisko Mining raises $154M for Windfall FINANCING
| Plans JV with Australia’s Northern Star Resources
BY MARILYN SCALES
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The Dixie gold project in northwest Ontario. GREAT BEAR RESOURCES
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BY NAIMUL KARIM
old miner Kinross Gold (TSX: K; NYSE: KGC) is acquiring junior explorer Great Bear Resources (TSXV: GBR; US-OTC: GTBAF) for $1.8 billion (US$1.4 billion) in order to get its hands on the junior’s flagship Dixie gold project in northwestern Ontario, one of the most important gold discoveries in Canada’s history. “We have been looking at this asset since 2018,” Paul Rollinson, Kinross Gold’s CEO told analysts and investors on a conference call. “The exploration results to date from over 700 holes and 340 kilometres of drilling, suggests a prolific gold system that remains unconstrained and open to extension with over 80% of the property still unexplored.” “Over the past several years we have reviewed hundreds of opportunities NorthernMiner_CMYK_Nov.pdf including every opportunity in Can-
ada and we believe this is an excellent transaction for our shareholders,” he noted, adding that “now is the time to bring it into our portfolio.” Kinross is acquiring the junior explorer for $29 a share in cash and stock, a 40% premium to Great Bear’s 20-day volume weighted average price on the TSX Venture Exchange. Great Bear shareholders can choose to receive payment in cash or 3.856 Kinross shares for each Great Bear share they own. “Great Bear shareholders will now be in a unique position to benefit from the potential of the top-tier Dixie project under one company and will maintain strong exposure to the project through their Kinross shares,” Chris Taylor, Great Bear Resources’ president and CEO, said on the conference call. Situated in Ontario’s renowned Red Lake mining district, the Dixie 1 2021-11-24 10:46 AM project is accessible year-round by
highway and close to significant infrastructure, including paved roads, electricity and a natural gas pipeline. The project comprises 91 sq. km of contiguous claims with 80% of the property unexplored. So far, Great Bear has completed more than 340,000 metres of drilling in 794 drill holes and has identified five high-grade gold discoveries. The LP Fault zone, comprised of continuous wide, moderate grade mineralization with high-grade gold lenses, is the most significant discovery at Dixie to date. Drilling in the zone has identified gold mineralization along 10.8 km of strike length and down to a depth of 786 metres. The deposit remains open along strike and at depth. The project is expected to witness a multitrack development plan with See KINROSS GOLD AND GREAT BEAR RESOURCES / 8
sisko Mining (TSX: OSK) has signed an agreement with Australia’s Northern Star Resources (ASX: NST) to raise $154 million for continued work on its Windfall gold project 200 km north of Val d’Or in Quebec. The two companies have also agreed to negotiate the terms of an earn-in and joint venture allowing Northern Star to earn up to a 50% interest in the Windfall project. The financing agreement will see Osisko issuing a convertible senior unsecured debenture due December 1, 2025, to Northern Star. The debenture bears an interest rate of 4.75% per year payable semi-annually. “The potential of joining forces with Northern Star, a well-respected gold producer with a depth of experience in mining underground highgrade deposits similar to the Windfall project, would help de-risk the remaining work ahead to bring the Windfall project to successful production,” Osisko Chairman and CEO John Burzynski said in a news release. “We are confident that, subject to reaching an agreement with Northern Star on the earn-in joint venture terms, they will be a very strong partner in assuring our development plans for the Windfall project.” The Windfall gold project falls within the traditional territory of the Waswanipi Cree First Nation. Osisko has identified 1.9 million oz. of gold in the measured and indicated resource category (6 million tonnes grading 9.6 grams gold per tonne) and 4.2 million oz. of gold in the inferred resource (16.4 million tonnes grading 8 grams gold per tonne). Over the first seven years of production, the project would produce an average of 300,000 oz. of gold annually. The Windfall preliminary economic assessment was completed earlier this year, and the feasibility study is due in 2022. The Osisko debenture may be
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converted by Northern Star at any time after the first anniversary of closing, subject to certain conditions, at a conversion price equal to $4 per common share of Osisko Mining. When Northern Star completes its earn-in and joint venture agreement, it may convert the debenture into an interest in the property at a conversion premium of 125%. Further, the debenture may be redeemed by Osisko at any time after the second anniversary of closing for cash or common shares, provided the volume-weighted average trading price of the shares is not less than 125% of the conversion price. Northern Star is a Western Australia-based gold miner with operations in Australia, plus the Pogo mine in Alaska, which it acquired in 2018. A number of Australian miners including Newcrest Mining (TSX: NCM; ASX: NCM), Evolution Mining (ASX: EVN), Piedmont Lithium (ASX: PLL; NASDAQ: PLL), Sayona Mining (ASX: SYA), and St Barbara (ASX: SBM) have recently made moves into Canada. In a research note to clients, See OSISKO MINING / 8 PM40069240