DOWNLOAD THE MINING EXECUTIVE APP NOW
"Global Mining Descisions in Your Palms"
“We are pleased that our shareholders have voted overwhelmingly in support of our acquisition of Detour Gold. Once complete, the transaction will create a highly competitive, truly unique company in the gold mining industry. By combining Detour Lake with our Macassa and Fosterville mines, we will have three cornerstone assets in our two core jurisdictions of Canada and Australia, all three of which possess free cash flow generating operations, significant in-mine growth potential, and considerable regional exploration upside.”
Tony Makuch,
President and Chief Executive Officer
Kirkland Lake Gold
Kirkland Lake Gold Ltd. has completed the previously announced arrangement whereby Kirkland Lake Gold has acquired all of the issued and outstanding common shares of Detour Gold Corporation. Pursuant to the Arrangement, Kirkland Lake Gold has acquired 100% of the issued and outstanding Detour Shares and Detour Gold shareholders are entitled to receive 0.4343 of a common share of Kirkland Lake Gold in exchange for each Detour Share held immediately prior to closing of the Arrangement.
In aggregate, the Company issued approximately 77,217,129 Kirkland Shares under the Arrangement to former Detour Gold shareholders as consideration for their Detour Shares. Upon closing of the Arrangement, existing Kirkland Lake Gold and former Detour Gold shareholders own approximately 73% and 27% of the issued and outstanding Kirkland Shares, respectively.
As a result of the Arrangement, Detour Gold has become a wholly-owned subsidiary of Kirkland Lake Gold and the Detour Shares are anticipated to be de-listed from the Toronto Stock Exchange on or about February 3, 2020. Full details of the
Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold, commented: “We are pleased that our shareholders have voted overwhelmingly in support of our acquisition of Detour Gold. Once complete, the transaction will create a highly competitive, truly unique company in the gold mining industry. By combining Detour Lake with our Macassa and Fosterville mines, we will have three cornerstone assets in our two core jurisdictions of Canada and Australia, all three of which possess free cash flow generating operations, significant in-mine growth potential, and considerable regional exploration upside.
“The new Kirkland Lake Gold will be an industry leader in profitability, cash flow generation and cash resources. Given our significant financial strength, we will become increasingly active over the next year repurchasing our shares and growing our quarterly dividends. Under our normal course issuer bid (“NCIB”), we have the ability to repurchase up to 10% of our common shares in the public float, with remaining capacity under our current NCIB for future repurchases of up to 20 million shares. As we continue to generate free cash flow, both the NCIB and dividend will be important tools used to provide attractive returns to shareholders.”
The Arrangement is expected to be completed on January 31, 2020, subject to approval by the Ontario Superior Court of Justice and satisfaction of certain other closing conditions. Pursuant to the terms of the Company’s current NCIB, the Company can purchase up to 20,989,692 Kirkland Shares for cancellation, with 933,900 Kirkland Shares having been purchased to date. The current NCIB expires on May 28, 2020 and is expected to be renewed for an additional year at the time of expiration.