Kerr Mines Inc. (TSX:KER) entered into a letter agreement to acquire Bear Lake Gold Ltd. (TSXV:BLG) from Pinetree Capital Ltd. (TSX:PNP), GCIC Ltd, Pyramis Global Advisors, LLC and other shareholders for CAD 10.5 million on January 23, 2014. Under the terms of the letter agreement, Kerr Mines proposed to issue 1.4 units of Kerr Mines for every one common share of Bear Lake. Each unit will consist of one Kerr Mines share and one-half of one Kerr Mines warrant. The exercise price of such warrants will be CAD 0.16. Approximately 190.9 million Kerr Mines Units will be issued to former Bear Lake shareholders to acquire the 100% interest in Bear Lake. At the time of closing, the Board of Directors of Kerr Mines shall consist of seven Directors appointed as follows: six current Kerr Mines Board members or Kerr Mines nominees and one Bear Lake nominee. Kerr Mines has also agreed to advance CAD 3 million to Bear Lake to satisfy certain amounts and payables outstanding of Bear Lake until completion of the transaction. As approved by the shareholders of Kerr Mines at the annual and special meeting of the shareholders of Kerr Mines held on December 19, 2013, the Kerr Mines shares will follow completion of the transaction and the American Bonanza transaction, be consolidated on a 1 for 15 basis.

The transaction is subject to satisfactory due diligence, receipt of all necessary consents, waivers, permits, exemptions, orders and approvals including court approval of the plan of arrangement and the approval of each of the Toronto Stock Exchange and the TSX Venture Exchange and receipt of shareholder approval of the transaction by Bear Lake and Kerr Mines shareholders. The transaction is expected to be completed prior to the proposed acquisition of American Bonanza Mining Corp. by Kerr Mines. The arrangement must be approved by two-thirds of the votes cast by shareholders present and voting at the special meeting of Bear Lake shareholders called to consider the arrangement. The transaction will be completed by the end of April 2014.

As on February 25, 2014, Kerr Mines Inc. (TSX:KER) entered into an arrangement agreement to acquire Bear Lake Gold Ltd. (TSXV:BLG) from Pinetree Capital Ltd. (TSX:PNP), GCIC Ltd, Pyramis Global Advisors, LLC and other shareholders. The deal is also subject to listing of new shares, Competition Act (Canada) approval, third party approval, execution of support agreement by Kerr and Bear Board and officers, approval of lender, approval of the Board of Kerr and dissenter's rights limited. The Board of Directors of Bear Lake has unanimously resolved to recommend that its shareholders vote their securities in favor of the arrangement. The Boards of Directors of Kerr Mines approved the arrangement. The transaction is expected to close on or before May 30, 2014 and prior to the proposed acquisition of American Bonanza Mining Corp. by Kerr Mines. On May 6, 2014, shareholders of Bear Lake Gold approved the transaction. On May 14, 2014, the deal has been approved by the Ontario Superior Court of Justice.

Primary Capital Inc. acted as financial advisor to Bear Lake Gold Ltd. TMX Equity Transfer Services Inc. acted as depositary for Kerr. Chris Irwin of Irwin Lowy LLP acted as legal advisor for Kerr Mines. Equity Financial Trust Company acted as transfer agent to Bear Lake Gold Ltd. Charlene Krogh and Case Collard of Dorsey & Whitney LLP acted as legal advisor for Kerr Mines.