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Kirkland Lake Gold ties knot with Australia’s Newmarket Gold

Kirkland Lake Gold and Newmarket Gold Inc. have entered into a definitive agreement to merge the two companies. The combined company will have a market capitalization of approximately C$2.4 billion.

Kirkland Lake Gold and Newmarket Gold Inc. have entered into a definitive agreement to merge the two companies.

The combined company will have a market capitalization of approximately C$2.4 billion. Existing Kirkland Lake Gold and Newmarket shareholders will own approximately 57 per cent and 43 per cent, respectively, of the combined company.

With the addition of Newmarket's Fosterville Mine located in the state of Victoria, Australia and its other gold producing Cosmo and Stawell mines, targeted gold production of the combined company will be over 500,000 oz. for the full year ended 2016.

The company also announced gold production of 77,274 ounces for the third quarter of 2016, and 207,886 ounces year to date from the Macassa Mine Complex and its recently acquired Holt, Holloway and Taylor mines.

"I am very pleased to announce a strong quarter with significantly increased production and lower operating costs in spite of a one week planned shutdown at our Macassa operation,” said Tony Makuch president and CEO. “Our year-to-date gold production of 207,886 ounces puts us on track to meet our production guidance for the year. We achieved a record quarter of production at our flagship Macassa Mine Complex, along with improved grades of 16.5 g/t Au. The Holt Mine Complex also performed well during the quarter with an overall head grade of 5.3 g/t driven by Taylor, which achieved a head grade of 7.3 g/t.

"We also realized record low operating costs during the quarter of US$540/oz., as well as AISC of US$966/oz. We continue to build the cash balance and increased our cash position from the previous quarter by C$61.1 million.”