On May 18, we announced an agreement to acquire an approximately 19.9% interest in White Gold Corp. by selling our 100% interest in the White Gold exploration project in the Yukon Territory to the company.
The strategic ownership in White Gold Corp. will provide Kinross with future optionality in the highly prospective White Gold District, and in the larger Yukon Territory. Agnico Eagle Mines also holds an approximately 19.9% equity investment in White Gold Corp., and along with Agnico Eagle, we will leverage our deep technical and operational experience to support White Gold Corp.’s pursuit of exploration and development opportunities in the Yukon, including at the White Gold exploration property.
“We look forward to working with Agnico Eagle and White Gold Corp. to support the pursuit of quality development opportunities in this highly prospective and largely underdeveloped district,” said J. Paul Rollinson, President & CEO. “This investment will allow the three companies to pool their expertise together to strengthen their position in this excellent mining jurisdiction.”
Kinross’ sale of the White Gold exploration property to White Gold Corp. includes the following consideration:
- Approximately US$7 million (C$10 million) in cash, payable upon closing;
- 17.5 million common shares of White Gold Corp., at deemed purchase price of C$2.01 representing approximately 19.9% of the pro forma issued and outstanding shares of White Gold Corp., with a current market value of approximately US$26 million (C$35.2 million);
- Deferred payments of approximately US$11 million (C$15 million), payable in three equal payments of approximately US$3.7 million (C$5 million) upon announcement by White Gold Corp. of a preliminary economic assessment, announcement of the completion of a feasibility study, and following the announcement of a positive construction decision for the White Gold exploration project.
Read the full news release here.