Kirkland Lake Gold Announces Sale of Stawell Gold Mines
December 11 2017 - 9:30AM
Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or
the “
Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) is
pleased to announce that it has entered into a share sale agreement
with an affiliate of Arete Capital Partners Ltd. (“Arete”),
pursuant to which Arete will acquire all of the issued and
outstanding common shares of Stawell Gold Mines Pty Ltd. which
holds the Stawell Gold Mine located in the State of Victoria,
Australia.
Pursuant to the terms of the agreement, the
Company will receive US$6.25 million in cash consideration and will
retain a 2.5% net smelter return royalty (“NSR”) on the Stawell
mine.
Tony Makuch, President and CEO, Kirkland Lake
Gold, commented: “This transaction is consistent with our long-term
strategy to focus on our low-cost, high-grade core assets while
simultaneously providing Kirkland Lake Gold with continued exposure
to the project through the NSR. We believe the management team at
Arete is well positioned to optimize the operational potential of
Stawell in a sustainable manner to create value. I would like to
thank the entire team at Stawell for their dedication and
commitment over the years along with the strong support received
from the local Victorian Government in Australia.”
Closing of the transaction is expected to occur
on or before December 22, 2017, and is subject to certain customary
closing conditions.
About Kirkland Lake Gold
Ltd.
Kirkland Lake Gold Ltd. is a mid-tier gold
producer with 2017 target production of 580,000 to 595,000 ounces
from mines in Canada and Australia. The production profile of the
company is anchored from two high-grade, low-cost operations,
including the Macassa Mine located in northeastern 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 and operational
expertise.
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.
Investors are cautioned that forward-looking
information is not based on historical facts but instead reflect
the Company’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
potential impact of the sale of the Stawell mine and anticipated
benefits thereof; the anticipated timing of the closing of the
transaction; the future development and growth potential of the
Canadian and Australian operations; the future exploration
activities and the anticipated effects thereof; 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 Kirkland Lake Gold's annual information form
dated December 31, 2016, financial statements and related MD&A
for the third quarter ended September 30, 2017 and their interim
financial reports and related MD&A for the period ended
September 30, 2017 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 on Kirkland Lake Gold and to receive
news releases by email, visit the website www.klgold.com.
Anthony Makuch, President, Chief Executive
Officer & Director Phone: +1 416-840-7884E-mail:
tmakuch@klgold.com
Mark Utting, Vice President, Investor
Relations Phone: +1 416-840-7884E-mail:
mutting@klgold.com
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