of Canada said Monday that it would of that it does not already own, in an all-stock deal valued at $7.1 billion.

The deal would unite Kinross with Red Back, a fellow Canadian company and a major gold producer with a focus on African assets. The combined company would have 10 mines and four development projects in eight countries.

Under the terms of the deal, Red Back shareholders will receive 1.778 Kinross shares and 0.110 common share purchase warrants for each of their shares. At Monday’s closing share price, the deal amounts to 30.50 Canadian dollars per Red Back share, or $29.81.

That is a 17 percent premium to Monday’s closing price and a 21 percent premium to Red Back’s 20-day volume-weighted average price.

“By combining Kinross’ world-class mines, growth projects and proven ability in mine development with the potential of Red Back’s assets, we are creating a gold growth powerhouse,” Tye Burt, Kinross’s chief executive, said in a statement.

Lukas Lundin, Red Back’s chairman, and Richard Clark, the company’s chief executive, are expected to join Kinross’s board after the deal closes.

Based in Vancouver, Red Back focuses primarily on its Western Africa assets, notably in Mauritania and Ghana.