Kirkland Lake Gold almost doubles stake in Osisko Mining

Kirkland Lake Gold (TSX, NYSE:KL) has almost doubled its stake in fellow Canadian precious metals explorer Osisko Mining (TSX:OSK) by acquiring about 15 million common shares for around C$25 million ($19m) in cash.

With the investment, the Toronto-based miner increased its interest from the existing 8.58% to 13.61%, while its shareholding in Osisko now stands at 32,627,632 shares.

The move also expands Kirkland’s ownership of interest in the Urban Barry area of northwestern Quebec, which the company believes to be “highly prospective mining camp in the prolific Abitibi-Greenstone belt.”

“The investment is complementary to our existing interests in Metanor Resources Inc. and Bonterra Resources Inc., both of which have high-potential exploration holdings in the same area,” president and chief executive Tony Makuch said in the statement.

Kirkland is now targeting about 635,000 ounces of gold production for the year coming from both its Australian and Canadian mines.