Mining conglomerate Kinross Gold Corporation announced last week the acquisition of Vancouver-based Great Bear Resources, which is currently performing gold explorations in the Red Lake area.

The two companies entered into a definitive agreement with KGC acquiring all of the issued and outstanding shares of GBR.

The terms of the agreement are an upfront payment of $1.8 billion by Kinross, representing $29.00 CAD per Great Bear common share.

With the purchase, Kinross will acquire Great Bear’s crowned jewel Dixie project located just south of Red Lake, which is being widely recognized as the largest new gold discovery in Canada according to Great Bear.

Looking long-term the corporation has visions for the top tier deposit Dixie site with a mine complex, with an initial quality, high-grade open-pit mine, with potential upside for a longer-term, sizeable underground operation.

Upon completion of the agreement, Kinross has plans to undertake a comprehensive exploration and development of the project by advancing exploration activities, including 200,000 metres of planned drilling in 2022.

The Dixie Project is comprised of 91.4 square kilometers of continuous claims over 22km, covering an 18km gold target.

Kinross officials said the project has significant exploration potential, with 80 per cent of the area unexplored. The project hosts a prolific gold system and has high-potential mineralized zones remaining open along strike and at depth, with multiple avenues to unlock potential.

Great Bear has been hard at work with the project as they have completed 340,000 metres of drilling in 794 drill holes while discovering five high-grade gold discoveries.

The Canadian-based senior gold mining company has mining projects all over the world including the United States, Brazil, Chile, Ghana, Mauritania, and Russia.