Kinross Gold (KGC) will buy the 91% of shares in Red Back Mining (RBIFF) that it doesn't already own. Kinross will pay $7.1 billion for the shares.

The price represents a value of C$30.50 ($29.77) per Red Back share, The International Business Times reported. That's a premium of 17% over Red Back's closing price on the Toronto Stock Exchange on July 30.

For each share of Red Back, Kinross will offer 1.778 of its common stock and 0.110 of its common share warrant. Kinross expects to issue roughly 425 million common shares and about 26 million share-purchase warrants. When the transaction is complete, Kinross shareholders will own about 63% of the new company. Red Back shareholders will own the remaining 37%.

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