TORONTO, Jan. 28, 2020 /CNW/ - Kirkland Lake Gold
Ltd. ("Kirkland Lake Gold" or
the "Company") (TSX:KL) (NYSE:KL) (ASX:KLA) is
pleased to announce that at a special meeting of shareholders held
earlier today (the "Meeting"), Kirkland Lake Gold shareholders voted
overwhelmingly in favour of the resolution (the "Kirkland
Shareholder Resolution") approving the issuance of up to
77,407,217 common shares of Kirkland Lake
Gold ("Kirkland Shares") in connection with the
proposed acquisition of Detour Gold Corporation ("Detour
Gold") (TSX: DGC) by way of a plan of arrangement (the
"Arrangement").
155,221,082 Kirkland Shares, representing 74.05% of the issued
and outstanding Kirkland Shares as at the record date, were voted
at the Meeting and the Kirkland Shareholder Resolution was approved
by approximately 98.99% of votes cast by Kirkland Lake Gold shareholders either in person
or represented by proxy at the Meeting. The report of voting
results will be made available under the Company's profile on SEDAR
at www.sedar.com and on EDGAR at www.sec.gov.
In addition to the approval by Kirkland
Lake Gold shareholders, Detour Gold shareholders approved
the Arrangement at the special meeting of Detour Gold shareholders
held earlier today.
Tony Makuch, President and Chief
Executive Officer of Kirkland Lake
Gold, commented: "We are pleased that our shareholders have
voted overwhelmingly in support of our acquisition of Detour
Gold. Once complete, the transaction will create a highly
competitive, truly unique company in the gold mining industry. By
combining Detour Lake with our Macassa and Fosterville mines, we will have three
cornerstone assets in our two core jurisdictions of Canada and Australia, all three of which possess free
cash flow generating operations, significant in-mine growth
potential, and considerable regional exploration upside.
"The new Kirkland Lake Gold will
be an industry leader in profitability, cash flow generation and
cash resources. Given our significant financial strength, we will
become increasingly active over the next year repurchasing our
shares and growing our quarterly dividends. Under our normal course
issuer bid ("NCIB"), we have the ability to repurchase up to
10% of our common shares in the public float, with remaining
capacity under our current NCIB for future repurchases of up to 20
million shares. As we continue to generate free cash flow, both the
NCIB and dividend will be important tools used to provide
attractive returns to
shareholders."
The Arrangement is expected to be completed on January 31, 2020, subject to approval by the
Ontario Superior Court of Justice and satisfaction of certain other
closing conditions. Pursuant to the terms of the Company's current
NCIB, the Company can purchase up to 20,989,692 Kirkland Shares for
cancellation, with 933,900 Kirkland Shares having been purchased to
date. The current NCIB expires on May 28,
2020 and is expected to be renewed for an additional year at
the time of expiration.
For a more detailed description of the Arrangement, readers
should review the Company's management information circular dated
December 20, 2019 and visit
www.klgold.com/detouracquisition.
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, with target production for 2020 of 950,000 – 1,000,000
ounces. The production profile of the Company is anchored by two
high-grade, low-cost operations, including the Macassa Mine 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.
The Toronto Stock Exchange has neither reviewed nor accepts
responsibility for the adequacy or accuracy of this news
release.
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: (i) expectations regarding whether the
proposed Arrangement will be consummated, including whether
conditions to closing of the Arrangement will be satisfied, (ii)
expectations regarding timing for completion of the Arrangement,
(iii) expectations regarding the potential benefits and synergies
of the Arrangement, (iv) expectations with respect to the NCIB and
dividend policy, including anticipated benefits thereof; and (v)
expectations for other economic, business, and/or competitive
factors.
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 ability to consummate the
Arrangement; the ability to obtain requisite court and regulatory
approvals and the satisfaction of other conditions to the
consummation of the Arrangement on the proposed terms and schedule;
the ability of Kirkland Lake Gold
and Detour Gold to successfully integrate their respective
operations and employees and realize synergies and cost savings at
the times, and to the extent, anticipated; the potential impact of
the Arrangement on exploration activities; the potential impact of
the announcement or consummation of the Arrangement on
relationships, including with regulatory bodies, employees,
suppliers, customers and competitors; the re-rating potential
following the consummation of the Arrangement; the ability of the
Company to pursue an aggressive share buy back pchanges in general
economic, business and political conditions, including changes in
the financial markets; changes in applicable laws; compliance with
extensive government regulation; and the diversion of management
time on the Arrangement. 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 with the Canadian
securities regulators, including Kirkland
Lake Gold's annual information form, financial statements
and related MD&A for the financial year ended December 31, 2018, its interim financial reports
and related MD&A for the period ended September 30, 2019 and its management information
circular dated December 20, 2019
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 does not assume any obligation, to update this forward-looking
information except as otherwise required by applicable law.
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SOURCE Kirkland Lake Gold Ltd.