Strategic partnership with Kinross Gold. Allegiant Gold announced a financing and strategic investment by Kinross Gold Corporation (NYSE: KGC, TSX: K) which is expected to accelerate exploration and development activities at Allegiant's Eastside gold project in Nevada. Upon transaction close, Kinross will own 9.9% of Allegiant’s outstanding shares. Allegiant and Kinross will enter into an investor rights agreement, including the grant of standard anti-dilution and equity participation rights to Kinross. The transaction is subject to certain conditions and is expected to close on or about March 18, 2022.Transaction terms. Kinross executed a C$4,014,414 subscription agreement with Allegiant to acquire 10,036,034 units at C$0.40 per unit. Each unit is comprised of one common share and one-half of one common share purchase warrant. Each whole warrant may be exercised to purchase one common share at a price of C$0.70 for two years following the closing date.Exploration of the high-grade zone to accelerate. Allegiant and Kinross will form a four-person technical advisory committee comprised of two members from each company. The committee will provide advice and guidance on Allegiant's upcoming core drilling program. Allegiant has agreed to allocate no less than 80% of the investment by Kinross to a work program specifically designated for the high-grade zone within the western edge of the original pit zone.Rating is Outperform. The strategic investment by Kinross Gold, a senior gold mining company and owner of the Bald Mountain and Round Mountain mines in Nevada, is a significant vote of confidence in Eastside. In addition to being a source of future funding, Kinross may offer high value technical advice to accelerate Eastside’s development. While the equity issuance may be near-term dilutive, we have increased our price target given that we think a more robust drilling program could enhance the economics of the project by accelerating the magnitude of resource expansion and potentially increasing the average gold grade. Read More >>