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Klondex Mines set to buy Canadian explorer Bison Gold Resources

Last updated: 14:57 08 Aug 2017 BST, First published: 09:57 08 Aug 2017 BST

Gold bars
Bison Gold is focused on projects in Manitoba, Canada

Precious metals producer Klondex Mines Ltd (NYSE:KLDX, TSE:KDX) reported it is set to acquire Bison Gold Resources Inc (CVE:BGE) - a Canada focused gold exploration firm.

Bison said its board had approved the deal, which will be carried out  via a plan of arrangement, and will recommend Bison shareholders vote in favour.

The consideration will be in Klondex shares, cash or a combination of both, but is based on a price of US$0.59 per Bison share, which represents a big 131% premium to the last Bison closing price on August 2 this year.

Completion of the deal is subject to various conditions, including court approval, and the agreement of not less than 66% of Bison shareholders.

Bison's focus has been on two strategically situated gold properties -  the Central Manitoba (CM) and the Ogama/Rockland (OG) past producing mines in Canada.

These have now been consolidated and are called the Central Manitoba Property (CMP) and the Cryderman property.

Klondex has three producing properties -  the Fire Creek Mine and the Midas Mine and mill in Nevada, USA, and the True North Gold Mine and mill in Manitoba, Canada.

It also has the Hollister mine and the Aurora mine and ore milling facility, also  in Nevada, USA.