Sale of Red Lake mine could begin this week – by Ian Ross (Northern Ontario Business – November 8, 2022)

Many bidders could show interest in shuttered Red Lake mine should court approve sales process

Pure Gold Mining could have the ‘For Sale’ sign out for its Red Lake mine as early as Thursday. The insolvent Vancouver gold company, now under creditor protection, heads to a B.C. court Nov. 9 to petition for the sales process to begin immediately of its underground mine, processing mill and 4,600 hectares of gold property.

According to recent court documents, the company is asking for a stay of proceedings until Jan. 27, 2023 and permission to start the sales and investment solicitation process (SISP). National Bank Financial will be the sales agent.

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Pure Gold’s Red Lake mine poised to go on the selling block – by Ian Ross (Northern Ontario Business – November 2, 2022)

CCAA court documents show mine supply and service companies owed $16 million

With only a $260,000 cash balance at the end, insolvent Pure Gold Mining has started the process of finding a new buyer or deep-pocketed investor for its Red Lake mine and mill operation.

Facing an “imminent” cash crisis, unable to raise any outside financing, and plagued by “operational challenges,” the Vancouver mining company called a halt to operations Oct. 24 and was granted creditor protection by the B.C. Supreme Court under the Companies’ Creditor Arrangement Act on Oct. 31.

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Tough lessons for Pure Gold in Red Lake – by Ian Ross (Northern Ontario Business – August 18, 2022)

“We paid the price for that,” says company CEO in positioning the northwestern Ontario mine for late 2022 turnaround

Pure Gold Mining president-CEO Mark O’Dea offered a simple explanation for last year’s stumbling production start at its Red Lake mine. The company began mining at the wrong end of the deposit.

The Vancouver gold miner delivered a conference call update this week on its second quarter results and the progress made at its namesake mine after embarking on an operational “turn-around” process last January.

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Red Lake mine could be on the selling block – by Staff (Northern Ontario Business – July 13, 2022)

PureGold Mining launches strategic review of its underperforming mine

The “turnaround plan” for a struggling Red Lake gold mine may include a sale of the company and its underground operation in northwestern Ontario.

PureGold Mining has initiated a strategic review process that could involve a potential sale or merger of the company, a sale of all or part of its mine, or other long-term financing options. It’s been a steep decline for the Vancouver-based mining startup company.

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Mining the Northwest: Red Lake ramps up for gold mine expansions – by Staff (Northern Ontario Business – July 8, 2022)

Australia’s Evolution Mining preparing to pump millions into expanding gold zones, mill upgrades

Gold prices were slumping in July to a six-month low at US$1,730, but mining and advanced exploration activity is intensifying in the Red Lake mining camp. Evolution Mining plans to spend between $120 million and $135 million this year on development and upgrades at its Red Lake mine complex.

The Australian gold company has ambitious plans to boost gold production by 65 per cent in the northwestern Ontario camp over the next two to three years. “We know that all eyes are on Red Lake,” said Jake Klein, Evolution Mining’s executive chairman, in delivering a business update on its worldwide operations, June 27.

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Red Lake gold miner turns to Tony Makuch for help – by Staff (Northern Ontario Business – May 7, 2022)

PureGold Mining hires former Kirkland Lake Gold CEO as technical advisor

A struggling Red Lake gold mining company has turned to a well-respected mining veteran and company builder for help to get back on track. PureGold Mining is bringing former Kirkland Lake Gold CEO Tony Makuch aboard as a technical advisor.

Barely a year into commercial production, the company is struggling financially and operationally to get the former Madsen Mine complex into top gear. The former president-CEO of Kirkland Lake Gold, who resigned that post in February, will provide input on mining activities, development strategies, exploration efforts and organizational efficiencies.

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Chris Taylor is our Mining Person of the Year for 2021 – by Trish Saywell (Northern Miner – March 2, 2022)

Global mining news

Great Bear Resources president and CEO Chris Taylor was the stand-out choice for The Northern Miner’s Mining Person of the Year award for 2021.

The 44-year-old structural and economic geologist not only sold the company and its Dixie gold project in Ontario’s Red Lake district to Kinross Gold in December for $1.8 billion, but in the three years of due diligence leading up to the acquisition, Taylor and his team also managed to set off what he calls the “largest staking rush” in Red Lake’s history.

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Kinross on defensive after $1.8-billion bid for Red Lake gold development company Great Bear Resources – by Niall McGee (Globe and Mail – December 10, 2021)

Kinross Gold Corp.’s planned acquisition of Great Bear Resources Ltd. has landed with a thud, over widespread concern from investors that it may be overpaying for a development company with no gold reserves, and could even be opening itself up to a hostile takeover.

Toronto-based Kinross said in a news release late Wednesday that it had reached a friendly arrangement 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.

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NEWS RELEASE: Kinross announces acquisition of Great Bear Resources (December 08, 2021)

Flagship Dixie project in Northern Ontario has significant potential to become a top tier, large-scale operation

(This news release contains forward-looking information about expected future events and performance of the Company. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located at the end of this release.)

TORONTO, Dec. 08, 2021 (GLOBE NEWSWIRE) — Kinross Gold Corporation (TSX:K; NYSE:KGC) (“Kinross” or the “Company”) is pleased to announce today that it has entered into a definitive agreement (the “Agreement”) with Great Bear Resources Ltd. (TSX-V:GBR) (“Great Bear”) to acquire all of the issued and outstanding shares of Great Bear through a plan of arrangement (the “Transaction”).

Through the Transaction, Kinross will acquire Great Bear’s flagship Dixie project located in the renowned and prolific Red Lake mining district in Ontario, Canada. The Dixie project is one of the most exciting recent gold discoveries globally and extensive drilling results have shown the characteristics of a top tier deposit.

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The Evolution of the Red Lake Gold Mining Camp (Mining Life & Exploration News – October 2021)

The historic Red Lake Gold Mining district is evolving again into a premier goldmining district in Northern Ontario after a decade long decline – leading the reinvigorated Red Lake mining scene is the appropriately named Evolution Mining.

In the two years since Evolution Mining bought the gold mining assets from Newmont Goldcorp in 2019, the Australian-based company has helped to revive, the dormant mining district with its pledge to keep on investing in the area.

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Pure Gold stumbles in Ontario’s notoriously tricky-to-mine Red Lake mining district – by Niall McGee (Globe and Mail – September 23, 2021)

Pure Gold Inc. is struggling to produce gold at a profit, the latest junior to encounter technical problems in Ontario’s notoriously tricky-to-mine Red Lake region.

The Vancouver-based gold miner, which is backed by industry heavyweights such as Eric Sprott and Robert McEwen, has experienced a slew of issues underground since starting up its Madsen mine in Red Lake, about 550 kilometres northwest of Thunder Bay.

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Evolution Mining plans to pour millions into Red Lake gold complex – by Staff (Northern Ontario Business – July 16, 2021)

Australian miner on three-year spending spree to boost gold production, expand mill capacity and add 15 years of mine life

Australia’s Evolution Mining plans to sink a lot of money into its Red Lake gold mining and milling operations over the next three years.

The company’s board of directors recently approved a plan with a three-year capital investment timetable for Red Lake with the intent to boost gold production to more than 350,000 ounces a year by 2026, and extend mine life in the prolific northwestern Ontario camp by more than 15 years.

In a July 16 news release outlining its strategy, Evolution said the May acquisition of its Red Lake neighbour – Battle North Gold’s Bateman Mine – only served to “accelerate” its growth plan to restore Red Lake into one of Canada’s premier mining districts.

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Evolution continues with billion-dollar gold growth plan – by Peter Ker (Australian Financial Review – July 16, 2021)

Evolution Mining will invest a billion dollars over the next two years in a bid to halt a four-year decline in output and grow gold production by at least 30 per cent.

The growth strategy will include the $380 million expansion of the Cowal mine in NSW, where an underground mine will be built beneath the existing open pit so long as final government approvals can be obtained.

The new strategy was announced on the day Evolution revealed it produced 680,788 ounces of gold in fiscal 2021; about 20 per cent less than the company produced in fiscal 2017 and the fourth consecutive year of lower gold production.

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Rediscovering Red Lake: Historic, high-grade gold camp is seeing intense mining, development and exploration – by Alisha Hiyate (Canadian Mining Journal – March 2021)

Between Evolution Mining’s investment in the Red Lake mine, Great Bear Resources’ exploration success at Dixie, Pure Gold Mining opening up a second mine in the camp, and Battle North Gold planning a third – Red Lake is seeing renewed interest.

Evolution Mining made its entrance into Red Lake, Ont., only last year, after striking a deal with Newmont for the historic Red Lake gold complex in late 2019. The complex has a long and prolific history, with production of more than 25 million oz. at grades of over 20 g/t gold since the late 1940s.

Once the crown jewel in Goldcorp’s portfolio, the mine suffered from underinvestment and declining grades and resources in recent years. But, in line with its strategy of acquiring assets with long life potential in “well-endowed geological terranes,” Evolution saw the opportunity to turn it into a cornerstone asset, while restoring Red Lake to some of its former glory.

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Australia’s Evolution Mining doubles down on Red Lake; makes $343-million play for Battle North Gold – by Niall McGee (Globe and Mail – March 16, 2021)

Evolution Mining Ltd. is offering $343-million to buy Battle North Gold Corp. in a friendly transaction that would see the Australian miner double down on Ontario’s Red Lake gold district.

Melbourne-based Evolution is offering $2.65 a share in cash for Battle North, a 45-per-cent premium to Friday’s close. Battle North is urging its investors to vote for the deal in a coming shareholder vote, saying the acquisition reduces the execution risk of getting its Bateman gold mine into production.

Toronto-based Battle North has spent the past few years resurrecting an underground gold project with a notorious past. About five years ago, a previous iteration of the company, Rubicon Minerals Corp., rushed the project into production, with only a preliminary engineering study in hand.

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