Kirkland Lake Gold Acquires Shares of Osisko Mining Inc.
September 18 2018 - 6:38PM
Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or
the “
Company”) (TSX:KL) (NYSE:KL) today announced
that it has acquired 14,705,882 common shares
(“
Shares”) of Osisko Mining Inc. (TSX:OSK)
(“
Osisko” or the “
Issuer”) by way
of private placement financing at a price of CAD$1.70 per Share for
a total cash payment of approximately CAD$25 million (the
“
Investment”).
Prior to the Investment, Kirkland Lake Gold held
17,921,750 Shares, representing approximately 8.58% of the
outstanding Shares on a non-diluted basis. As of the date hereof,
after giving effect to Investment, the Company beneficially owns
32,627,632 Shares, representing approximately 13.61% of the
currently issued and outstanding Shares on a non-diluted basis. All
of the securities issued in the private placement financing are
subject to a statutory hold period expiring on January 19,
2019.
Tony Makuch, President and CEO of Kirkland Lake
Gold, commented: “Our strategic investment in Osisko increases our
ownership interest in the Urban Barry area of northwestern Quebec,
which we believe has become a new, 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. In addition, through the
investment in Osisko, we gain exposure to attractive, early-stage
exploration properties in close proximity to our Holt and Taylor
mines, providing additional value potential around our existing
asset base in Ontario.” The Shares were acquired for
investment purposes. Kirkland Lake Gold has a long-term view of the
investment and may acquire additional securities either on the open
market or through private investments or sell the securities either
on the open market or through private dispositions in the future
depending on market conditions, reformulation of plans and/or other
relevant factors.
This press release is being issued in pursuant
to National Instrument 62-103 – The Early Warning System and
Related Take-Over Bid and Insider Reporting Issues, which also
requires a report to be filed with the regulatory authorities in
each jurisdiction in which the Issuer is a reporting issuer
containing information with respect to the foregoing matters (the
“Early Warning Report”). A copy of the Early
Warning Report will be filed on the Issuer’s profile on SEDAR and
may also be obtained by contacting the Company at 416-840-7884 or
by email at info@klgold.com.
About Kirkland Lake Gold
Ltd.
Kirkland Lake Gold Ltd. is a mid-tier gold
producer that in 2018 is targeting over 635,000 ounces of gold
production 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.
For more information, please
contact:
Anthony Makuch, President, Chief Executive
Officer & DirectorPhone: +1 416-840-7884E-mail:
tmakuch@klgold.com
Mark Utting, Vice President, Investor
RelationsPhone: +1 416-840-7884E-mail: mutting@klgold.com 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, in this press release, include information
regarding the sale or purchase of additional Shares that it owns in
the future, on the open market or in private transactions.
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 Company. Among the key factors that could cause
actual results to differ materially from those projected in the
forward-looking information are the following: changes in general
economic, business and political conditions, including changes in
the financial markets; changes in applicable laws. 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, 2017 and the annual
consolidated financial statements and related MD&A for the
period ended June 30, 2018, which are 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.
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