KinrossHas a history of bad take overs. ARU and Redback Mining destroyed Kinross shareholders wealth:
Globe says Kinross's Great Bear deal lands with a thud
2021-12-10 08:11 ET - In the News
See In the News (C-K) Kinross Gold Corp (2)
The Globe and Mail reports in its Friday edition that investors are wary of Kinross Gold's planned acquisition of Great Bear Resources. The Globe's Niall McGee writes that Kinross plans to acquire Great Bear for $29 a share in cash and stock, a 26.5-per-cent premium to its market price, in a transaction worth $1.8-billion. The move would help Kinross reduce its exposure to politically problematic Russia and West Africa, and increase its weighting toward Canada. Great Bear shares have soared over the past few years, owing to promising drilling results at its Dixie gold project at Red Lake, Ont. The Globe notes that Great Bear is still at a nascent state. It has not yet conducted a 43-101 report on Dixie. The regulatory report is a rigorous study carried out by geologists estimating the grade and quantity of gold in the ground, and the costs of extraction. Pollitt & Co. analyst Doug Pollitt says: "If there are bodies, they're always buried somewhere in a 43-101. A 43-101 allows the public to make more informed investment decisions. We don't have that with Great Bear, and there's a lot of money at stake." Paying top dollar for early-stage exploration companies with no 43-101 can be dangerous.