Kinross Gold Corporation (USA)(NYSE:KGC) has entered into a deal to acquire an almost 19.9% stake in White Gold Corp. by selling its 100% stake in the White Gold exploration assignment in the Yukon Territory to the firm.
The buzz
The strategic title in White Gold will offer Kinross with impending optionality in the highly potential White Gold District, and in the Yukon Territory. Moreover, Agnico Eagle Mines Limited holds an almost 19.9% equity stake in White Gold Corp., and both Agnico Eagle and Kinross are projected to use their deep operational and technical experience to advance White Gold’s pursuit of exploration and advancement prospects in the Yukon, counting at the White Gold exploration asset.
Paul Rollinson, the CEO and President of Kinross Gold, reported that they look forward to working with White Gold and Agnico Eagle to support the quest of quality development prospects in this highly potential and mainly underdeveloped district. This investment will permit the three firms to bring their expertise together to support their position in this exceptional mining jurisdiction.
White Gold Exploration asset sale to White Gold Corp. comprises the consideration of almost US$7 million in cash, to be paid upon closing; 17.5 million shares of White Gold, at deemed buy price of C$2.01 showcasing almost 19.9% of the pro forma released and due shares of White Gold, with a current market value of nearly US$26 million; deferred payments of almost US$11 million, payable in three payments of almost US$3.7 million upon declaration by White Gold of a preliminary economic evaluation, update of the closure of a feasibility trial, and following the report of a affirmative construction conclusion for the White Gold exploration assignment.
Kinross will also finalize an investor rights deal with White Gold that will offer Kinross with the privilege to maintain its ownership stake through involvement in any future equity financings, and the privilege to propose a board member in White Gold.
