Kirkland Lake Gold (TSX:KL) announced Friday it has completed the acquisition of Detour Gold.
Pursuant to the previously announced 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 (each whole share, a “Kirkland Share”) in exchange for each Detour Share held immediately prior to closing of the Arrangement, said a company news release.
In aggregate, the KL Gold issued more than 77 million 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 73per cent and 27 per cent of the issued and outstanding Kirkland Shares, respectively.
As a result of the deal, Detour Gold has become a wholly-owned subsidiary of Kirkland Lake Gold. The company said Detour shares are anticipated to be de-listed from the Toronto Stock Exchange on or about February 3, 2020.
Kirkland Lake Gold also announces that effective as of January 31, 2020, both Pamela Klessig and Raymond Threlkeld have retired as members of the Company’s board of directors (the “Board”).
Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold, commented: “Pam and Ray have made significant contributions to the advancement of Kirkland Lake Gold. Their advice and counsel has been highly valued during a period of rapid growth and value creation for our company. We wish them all the best going forward and we will miss them.”
Kirkland Lake Gold Ltd. is a growing gold producer with operating mines in Canada and Australia that produced 974,615 ounces in 2019, with target production for 2020 of 950,000 – 1,000,000 ounces. The production profile of the Company is anchored by two high-grade, low-cost operations, including the Macassa Mine located in Northern Ontario and the Fosterville Mine located in the state of Victoria, Australia, said the company news release.
Detour Gold is the 100 per cent owner of the Detour Lake Gold Mine, one of the largest open pit gold mines in Canada, located north of Cochrane, Ontario. In 2018, the mine produced more than 620,000 ounces of gold.