TORONTO (AP) — The announced on Monday that it would acquire the 91 percent of shares of Red Back Mining that it does not already own in an all-stock deal valued at $7.1 billion.

Kinross, which is based in Toronto, said the merger with Red Back Mining, a gold producer focused on Africa, would create a pure gold sector producer with an exceptional growth profile.

Shareholders of Red Back Mining, based in Vancouver, will receive 1.778 Kinross common shares and 0.110 of a Kinross common share purchase warrant for each Red Back common share held. The current Kinross shareholders will then hold about 63 percent of the combined company, while current shareholders of Red Back will hold about 37 percent.

The value of the offer is $29.80 per Red Back common share, representing a premium of 15 percent from Friday’s close of Red Back shares on the Toronto Stock Exchange. Canada’s stock exchange was closed on Monday because of a holiday.

Red Back’s two main projects are the Chirano Gold Mine in Ghana and the Tasiast Gold Mine in Mauritania. Kinross has mines and projects in Canada, the United States, Brazil, China and Russia.

Analysts estimate that the combined company’s gold production would be about 3.9 million ounces in 2015.

“By combining Kinross’s 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 W. Burt, Kinross’s president and chief executive, said in a statement.

“The significant upside in reserves that we believe exists at Red Back, and Kinross’s ability to accelerate that potential, makes this an outstanding prospect for shareholders of both companies.”