Kinross Gold Corporation (TSE: K) (NYSE: KGC) is taking a 9.9 per cent equity position in Eminent Gold Corp. (CVE: EMNT) (FSE: 7AB) as part of a private placement in which the latter company intends to raise up to USD$5 million.
Announced on Monday, Kinross’ investment depends on signing an Investor Rights Agreement between both parties. Under this agreement, Kinross will have the right to maintain its ownership level in future equity distributions.
This applies whether the Eminent issues shares for cash or non-cash assets. If the shares are for cash, Kinross can invest on the same terms as other investors. However, if the shares are issued for non-cash assets, Kinross will receive shares priced at the higher of the five-day Volume Weighted Average Price (VWAP), or the TSX Venture Exchange’s minimum price.
If the equity distribution is less than 2.5 per cent of the company’s outstanding shares, Kinross may defer participation. Once a year, Kinross can top up its ownership.
Eminent and Kinross will also create a technical advisory committee for the Hot Springs Range and Celts Projects. The Hot Springs Range and Celts Projects are early-stage gold exploration programs located in Nevada, targeting structurally controlled, high-grade mineralization. Furthermore, Kinross will appoint two of the members and also have a right of first offer on any option deals.
Additionally, Kinross has agreed to a standstill that limits its ownership to 19.9 per cent, on a partially diluted basis. The company must maintain the advisory committee and Kinross’ participation rights as long as Kinross holds at least 4.9 per cent of the Eminent. If Kinross’ ownership drops below that threshold, these rights will end.
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Nevada is one of the world’s most attractive regions
Kinross Gold operates several key properties in Nevada, with its flagship being the Round Mountain mine, a large open-pit operation in Nye County. Round Mountain has produced over 15 million ounces of gold since 1977 and continues to be a major contributor to Kinross’ production profile.
The company also operates the Bald Mountain mine in White Pine County, an open-pit, run-of-mine heap leach operation known for its large land package and exploration potential. Kinross has ongoing exploration across both sites, focusing on expanding mineral reserves and extending mine life.
Additionally, Kinross is advancing its Gold Hill satellite deposit, located near Bald Mountain. In recent years, the gold producer has shown interest in partnering or investing in earlier-stage projects to strengthen its Nevada portfolio.
These operations align with Kinross’ strategy of focusing on high-quality, low-risk jurisdictions, and support its broader goals of maintaining strong U.S.-based gold production.
Nevada remains one of the world’s most attractive regions for gold producers due to its rich geology and stable regulations.
The state hosts the prolific Carlin and Battle Mountain-Eureka trends, known for high-grade and bulk-tonnage deposits. Its mining-friendly policies, skilled workforce, and infrastructure make it a top-tier jurisdiction.
Other companies are also capitalizing on Nevada’s potential.
Calibre Mining Corp. (TSE: CXB) (OTCMKTS: CXBMF), for example, recently acquired the Pan Mine and the nearby Gold Rock Project. Both assets offer near-term growth and strong exploration upside.
Another key player is i-80 Gold Corp (TSE: IAU) (NYSE: IAUX), which is advancing several high-grade underground projects, including Ruby Hill and Granite Creek.
These companies are drawn by Nevada’s consistent permitting framework and long history of large-scale discoveries.
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