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Great Bear shareholders advised to vote in favour of Kinross acquisition

Two independent advisory firms have recommended that shareholders should vote for the proposed acquisition of Great Bear Resources by Kinross Gold.
Great Bear shareholders advised to vote in favour of Kinross acquisition Great Bear shareholders advised to vote in favour of Kinross acquisition Great Bear shareholders advised to vote in favour of Kinross acquisition Great Bear shareholders advised to vote in favour of Kinross acquisition Great Bear shareholders advised to vote in favour of Kinross acquisition

Petra Witowski

In December 2021, Kinross made a C$29 per share, 40% premium offer to acquire Great Bear and its Dixie high-grade gold project in the Red Lake district of Ontario, Canada. This valued Great Bear at about C$1.8 billion.

Institutional Shareholder Services (ISS) said shareholder approval is warranted "due to the significant premium, favourable market reaction, reasonable strategic rationale and the absence of significant governance concerns". 

Meanwhile Glass Lewis & Co said: "The company undertook a lengthy and competitive sale process prior to agreeing to a deal with Kinross, which in turn should provide shareholders with a reasonable degree of assurance that the proposed merger likely represents the best available strategic alternative."

A special meeting of shareholders in connection with the proposed acquisition by Kinross Gold will be held on February 14. Shareholders can vote ahead of the meeting with a deadline of 10:00 Pacific Standard Time (18:00 GMT) on February 10.

A recent presentation provided by Great Bear Resources showed that Kinross began its engagement under a confidentiality agreement with Great Bear in March 2018. During this time, Kinross undertook two site visits to the flagship Dixie Project, which comprises 91.4sq km of contiguous claims over a 22km area and covers an 18km gold target. 

Great Bear Resources last traded on the Toronto Stock Exchange at C$28.15/share, drifting slightly lower on the day, while Kinross Gold last traded at C$6.69/share, approximately 1.3% lower on the day.