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Kirkland Lake Gold shares up over 8% on M&A rumour

Detour Lake mine (Credit: Kirkland Lake Gold)

Kirkland Lake Gold (TSX: KL) rose nearly 8.5% in early trading Monday after IKN News released a statement Sunday saying the gold miner was “marketing itself to the highest bidder”.

According to the report, the sales process is in an advanced stage, with at least four companies still in the process and “one has now emerged as the clear favorite,” although that company is not specified.

Kirkland Lake Gold recently increased its measured and indicated resource base for its Detour Lake mine in Ontario by 211% to 14.71 million oz. gold

“This deal could be announced at any moment and is the driving force behind KL’s share price outperformance these last two weeks,” the report reads.

Kirkland Lake Gold recently increased its measured and indicated resource base for its Detour Lake mine in Ontario by 211% to 14.71 million ounces held in 572,000 tonnes measured and indicated, grading on average 0.8 gram per tonne gold.

The news is stoking speculation in online investor forums that a major producer such as Barrick (NYSE: ABX) might be a potential suitor to gain control of the Detour asset. If the rumour turns out to be true, and if Barrick is involved, another no-premium deal could be expected.

MINING.COM reached out to Kirkland Lake for comment but had not yet received a response by press time.

Kirkland Lake shares in Toronto last traded at C$55.79 ($44.21), which capitalizes it at C$14.87 billion ($11.78 billion).

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