Kinross Buying Bema

It's a big gold deal.
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Kinross (KGC) - Get Report agreed to acquire rival Canadian goldminer Bema (BGO) for $2.81 billion in stock.

Toronto-based Kinross will issue 0.441 share for each share of Vancouver-based Bema in a deal that gives Bema holders a 22% premium to Friday's closing prices.

"This acquisition will create exceptional value for shareholders," said Kinross chief Tye W. Burt. "By combining our assets, operations and expertise, we have dramatically increased our gold reserve and resource base to more than 50 million ounces. We will have a well-balanced gold reserve profile with 39% in Chile, 37% in Brazil, 16% in North America and 8% in Russia. These reserves, coupled with our enhanced exploration pipeline, will put Kinross in a unique position to take advantage of the robust gold price and provide investors with an excellent portfolio of world-class assets."

Shares in both companies were halted Monday.