Kinross closed its acquisition of Great Bear Resources on February 24, the day of Russia's military invasion of Ukraine which also resulted in Kinross suspending its key mining operations in Russia this month.
Under the terms of the Great Bear Resources acquisition, Great Bear shareholders were provided the right to elect to receive C$29.00 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.
Kinross will pay approximately C$1.35 billion in cash and issue shares to Great Bear security holders under the arrangement.
Kinross drew down US$1.1 billion from a US$1.5 billion revolving credit facility to finance the cash portion of the purchase.
Great Bear Resource's main asset is the Dixie gold development project in Northwestern Ontario, Canada.
Kinross is aiming to drill 200,000 meters this year at Dixie to further define the asset's potential.
Kinross operated the Kupol mine which was guided to produce 350,000 ounces gold-equivalent in 2022. The firm has also suspended its Udinsk project in Russia.
"The three-year term loan will mature on March 7, 2025 [and] has no mandatory authorisation payments and has a flexible repayment schedule," Kinross said.
Kinross was indicated on the Toronto Stock Exchange at C$7.06, up CS$0.08 or 1.1% higher at 0915.