Under the terms of the agreement, Kerr Mines will issue 1.4 units of the company for each common share of Bear Lake.
"We are pleased with the acquisition of Bear Lake which adds an additional 13 km strike-length of the prolific Cadillac Larder Lake break to the Kerr Mines land package, an inferred resource estimate of nearly 1 MM oz grading over 5 g/t Au and a strategic partnership through an option and joint venture with Gold Fields on the Bear Lake property," said Greg Gibson, president and CEO of Kerr Mines.
The announcement came day after Kerr announced it had entered a letter agreement to acquire American Bonanza Gold Corp., which has property in Arizona.
Kerr, formerly known as Armistice Resources, has also completed a $5.35-million private placement to generate exploration funds for its McGarry Mine project, located in Virginiatown near Kirkland Lake.
In addition to the McGarry Mine, Kerr owns a series of contiguous gold properties in Virginiatown on the Larder Lake-Cadillac Break that extends 200 km east-west straddling the Ontario and Quebec border and that have produced 95 million ounces of gold in past operations.
Bear Lake’s Larder Lake gold project located on the Cadillac-Larder Lake Break is being explored under an option and joint venture agreement with Gold Fields Abitibi Exploration Corp. (a subsidiary of Gold Fields Ltd.).