Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or
the “
Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today
announced a number of initiatives designed to protect employees,
their families and local communities from the COVID-19 virus.
Included among the initiatives are the introduction of company-wide
health and safety protocols, a temporary reduction in operations at
the Detour Lake Mine, a remote operation with a large accommodation
camp, until April 30, 2020, the suspension of non-essential work at
all operations, as well as the suspension of all exploration
activities across the Company.
In addition, the Company also announced today it
will terminate the Automatic Share Purchase Plan (“ASPP”) effective
March 23, 2020. The suspension reflects the Company’s commitment to
maintaining financial strength during the current period of
uncertainty related to the COVID-19 virus. The ASPP was launched on
February 20, 2020 in connection with the Company’s current normal
course issuer bid (“NCIB”) to allow for share purchases that would
not be subject to black-out periods and other restrictions. The
current NCIB remains in effect on the same terms and conditions as
previously disclosed. Under the current NCIB, the Company can
purchase up to 10.5 million additional common shares between now
and its expiry on May 28, 2020. A total of 10.4 million
common shares have been repurchased to date through the current
NCIB, including 1.9 million shares through the ASPP. Except as set
out in this press release, the Company is not aware of any material
undisclosed information about its business or its securities.
COVID-19 Response Plan
At the present time there are no confirmed cases
of COVID-19 at any of the Company’s operations or offices. In
response to the health risks associated with COVID-19, Kirkland
Lake Gold has implemented a series of health and safety protocols
on a company-wide basis. At the operational level, site-level
controls currently in place and/or being introduced include medical
screening of all individuals prior to entering site, enhanced
cleaning and hygiene practices, social distancing of workers,
increased reliance on the use of technology such as hosting of
virtual meetings, work from home policies and the suspension of all
non-essential work at, and visits to, the Company’s mine sites.
Detour Lake Mine
Detour Lake Mine is a camp operation, located
approximately 185 kilometres northeast of Cochrane, Ontario and 300
kilometres northeast of Timmins, Ontario. The camp at Detour Lake
accommodates approximately 1,100 workers at any given time. To
reduce risk of the COVID-19 virus, the Company will transition to
reduced operations effective March 23, 2020. Continuing activities
at the mine will include mill processing of reduced feed from the
open pit and stockpiles, management of water levels during the
spring run-off and environmental management activities. All
personnel not essential for the performance of these activities
will be required to leave or remain offsite until April 30, 2020.
In addition, workers from remote First Nations communities and
those along the James Bay coast, as well as employees requiring
airline transportation to get to and from the minesite, will also
be advised to remain off site until the end of April. For workers
affected by the move to reduced operations, the Company will
provide paid leave for 14 working days, the equivalent of a month
of normal pay.
Approximately 300 workers are expected to remain
on-site to perform the essential activities during reduced
operations. In addition to the health and safety protocols set out
above, a number of additional measures applicable to a camp
operation have been implemented, including processes for the
assessment, isolation and medical evacuation of employees,
increased food and hygiene safety and a greater frequency of
cleaning.
Tony Makuch, President and Chief Executive
Officer of Kirkland Lake Gold, commented: “COVID-19 represents an
unprecedented challenge for people, governments and businesses
worldwide. While none of our employees have tested positive for
COVID-19, the actions we are taking represent our best judgement,
based on what we know today, on how to responsibly protect our
people from the pandemic. As always, the safety of our employees is
our top priority. On a company-wide basis, we are introducing a
series of health and safety protocols including medical screening,
increased cleaning and hygiene and remote work and other forms of
social distancing. We are also discontinuing all non-essential work
at our operations and suspending exploration activities across the
Company. In the case of Detour, the increased risk represented by
the remoteness of the mine and the camp environment requires a more
extensive response. As a result, we are transitioning to reduced
operations until April 30, 2020 in order to minimize the number of
people required at site. We will continue to produce, though at
lower levels, and will ensure critical tasks are completed such as
managing water during the spring run-off and ongoing environmental
management. It is not possible at this time to estimate the impact
of reduced operations on Detour Lake’s 2020 production.
“Turning to our NCIB, we have been very
committed to buying back our shares through the NCIB, with a total
of 10.4 million shares having been repurchased under the current
plan to date for a total of $360 million (C$483 million). Given
current global events, we believe it is prudent to maintain as much
financial flexibility as possible. We continue to have a very
strong balance sheet with close to $500 million of cash and no
debt. To preserve our financial strength, we have elected to
discontinue the ASPP, through which we were repurchasing
approximately 103,000 shares per day on an automatic basis, outside
of our discretion. We retain the option to repurchase shares
through the discretionary component of the NCIB and will consider
any future repurchases in relation to evolving global
developments.”
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a growing gold
producer operating in Canada and Australia that produced 974,615
ounces in 2019. The production profile of the Company is anchored
by three high-quality operations, including the Macassa Mine and
Detour Lake Mine, both located in Northern Ontario, and the
Fosterville Mine located in the state of Victoria, Australia.
Kirkland Lake Gold's solid base of quality assets is complemented
by district scale exploration potential, supported by a strong
financial position with extensive management expertise.
For further information on Kirkland Lake Gold and to receive
news releases by email, visit the website www.klgold.com.
Cautionary Note Regarding
Forward-Looking Information
This press release contains statements which
constitute "forward-looking information" within the meaning of
applicable securities laws, including statements regarding the
plans, intentions, beliefs and current expectations of Kirkland
Lake Gold with respect to future business activities and operating
performance. Forward-looking information is often identified by the
words "may", "would", "could", "should", "will", "intend", "plan",
"anticipate", "believe", "estimate", "expect" or similar
expressions and include information regarding the reduction of
operations at the Detour Lake Mine and anticipated effects thereof,
the ability of the Detour Lake Mine to fully resume operations
effective April 30, 2020, proposed timing associated with future
purchases made under the NCIB and the anticipated effects thereof,
the anticipated effects of the termination of the ASPP, and the
anticipated effects of the Company’s COVID 19 response plan.
Investors are cautioned that forward-looking
information is not based on historical facts but instead reflect
Kirkland Lake Gold's management's expectations, estimates or
projections concerning future results or events based on the
opinions, assumptions and estimates of management considered
reasonable at the date the statements are made. Although Kirkland
Lake Gold believes that the expectations reflected in such
forward-looking information are reasonable, such information
involves risks and uncertainties, and undue reliance should not be
placed on such information, as unknown or unpredictable factors
could have material adverse effects on future results, performance
or achievements of the combined company. Among the key factors that
could cause actual results to differ materially from those
projected in the forward-looking information are the following: the
future impacts of the COVID 19 pandemic and government response to
such pandemic, the ability of the Company to continue operations at
its mine sites in lieu of the pandemic and the risk of future shut
downs as a result thereof; future development and growth potential
of the Company’s projects; future exploration activities planned at
the Canadian and Australian properties; risks relating to equity
investments; risks relating to first nations and Aboriginal
heritage; the availability of infrastructure, energy and other
commodities; nature and climactic conditions; currency exchange
rates (such as the Canadian dollar and the Australian dollar versus
the United States dollar); risks associated with dilution; labour
and employment matters; risks in the event of a potential conflict
of interest; changes in general economic, business and political
conditions, including changes in the financial markets; changes in
applicable laws; and compliance with extensive government
regulation. This forward-looking information may be affected by
risks and uncertainties in the business of Kirkland Lake Gold and
market conditions. This information is qualified in its entirety by
cautionary statements and risk factor disclosure contained in
filings made by Kirkland Lake Gold, including its annual
information form for the year ended December 31, 2018 and financial
statements and related MD&A for the financial year ended
December 31, 2019 and 2018 filed with the securities regulatory
authorities in certain provinces of Canada and available at
www.sedar.com.
Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking information prove incorrect, actual results may
vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Although Kirkland
Lake Gold has attempted to identify important risks, uncertainties
and factors which could cause actual results to differ materially,
there may be others that cause results not to be as anticipated,
estimated or intended. Kirkland Lake Gold does not intend, and do
not assume any obligation, to update this forward-looking
information except as otherwise required by applicable law.
FOR FURTHER INFORMATION PLEASE
CONTACT
Anthony Makuch, President, Chief Executive
Officer & DirectorPhone: +1 416-840-7884E-mail:
tmakuch@klgold.com
Mark Utting, Vice-President, Investor Relations Phone: +1
416-840-7884 E-mail: mutting@klgold.com
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