Kirkland Lake plans $18 million exploration program at Macassa
Canada's Kirkland Lake Gold (TSX:KGI) will invest $18 million in an exploration program near its Macassa gold mine near Kirkland Lake this year. And to fund it, the company has proposed a $15-million non-brokered offering of 1.05 million flow-through shares.
From its press release:
Kirkland Lake Gold Announces Non-Brokered Flow Through Private Placement Financing Of Up To $15,000,000
TORONTO, ONTARIO–(Marketwired – June 21, 2016) –
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION TO THE UNITED STATES
Kirkland Lake Gold Inc., (the "Company") (TSX:KGI) announces that it intends to complete a non-brokered private placement financing (the "Offering") of 1,047,340 common shares that are "flow-through shares" within the meaning of the Income Tax Act (Canada) (each a "Flow-Through Share") at a price of $14.32 per Flow-Through Share for aggregate gross proceeds of approximately $15,000,000.
Eric Sprott, Chairman of the Board, commented, "We are pleased to announce the flow-through financing which is being offered at a significant premium to the Company's shares as at close of business yesterday. We remain committed to increasing the Company's growth potential through exploration of our extensive mineral claim holdings in both the prolific East Timmins and Kirkland Lake gold districts."
Doug Cater, Vice President, Explorations, noted, "I am very excited and encouraged at the opportunity to expand our exploration programs with the announcement of this flow-through financing, especially considering the Company's recently approved 2016 exploration budget which proposed $18 Million in surface and underground exploration drilling at both our Kirkland Lake and East Timmins operations. This financing will enable our exploration personnel to actively explore for mineralized zones adjacent to our operations, as well as allowing us to take a "discovery focus" to the Company's regional targets. Exploration programs will be conducted throughout the East Timmins/Matheson district, which consists of more than 1,700 mineral claims, many of which straddle the Porcupine Destor Fault Zone, host to numerous gold mines and deposits including the company's Holt and Holloway operations and the Company's consolidated claim package over the highly prospective section of the Main and Amalgamated Breaks in the Kirkland Lake District. To date, our exploration personnel have defined a wide variety of exploration targets with the primary exploration activities to consist of geophysical surveys and diamond drill follow-up.
This financing is a substantial exploration commitment for the Company and it speaks to the high quality mineral potential and overall prospectivity of the districts in which the Company operates. I look forward to providing further updates from these exploration programs as they become available."
All proceeds from the sale of the Flow-Through Shares will be used to incur eligible Canadian Exploration Expenses at the Company's Macassa Mine Complex and its East Timmins Operations, located in Ontario, Canada. The Company will renounce qualifying expenses as at December 31, 2016.
The Flow-Through Shares will be issued on a private placement basis in certain provinces of Canada, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws. The Flow-Through Shares will be subject to a statutory hold period of four months and one day from the date of closing of the Offering.
Closing of the Offering is scheduled to occur on or before July 7, 2016 and remains subject to the approval of the Toronto Stock Exchange and other customary closing conditions. The Offering is non-brokered and will not result in the payment of any broker fees or commissions.
Mr. Cater, a 'qualified person' for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators, has reviewed and approved this news release. As the Vice President of Exploration, Mr. Cater is not considered independent.
About the Company
Kirkland Lake Gold Inc. is a Canadian focused, intermediate gold producer with assets in the historic Kirkland Lake gold camp, and east of the Timmins gold camp along the Porcupine-Destor Fault Zone, both in northeastern Ontario. The Company is currently targeting annual gold production of between 270,000 to 290,000 ounces from its cornerstone asset, the Macassa Mine Complex and the recently acquired East Timmins Operations.
The Company is committed to building a sustainable mining company that is recognized as a safe and responsible gold producer with quality assets in safe mining jurisdictions.