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by Stockwatch Business Reporter

New York spot gold lost $1.50 to $1,319.90 on Thursday. The TSX Venture Exchange fell 2.38 points to 799.09 while the TSX Gold Index lost 1.67 points to 240.21. Most Canadian gold miners posted modest losses today. Barrick Gold Corp. (ABX) lost one cent to $23.58 on 4.62 million shares while Iamgold Corp. (IMG) fell seven cents to $5.53 on 4.43 million shares.

Eric Sprott and Tony Makuch's Kirkland Lake Gold Inc. (KLG) slumped 84 cents to $10.28 on 1.55 million shares on word it will merge with Douglas Forster's Newmarket Gold Inc. (NMI) to form "an exciting new mid-tier gold company." Kirkland Lake's shareholders will get 2.1053 Newmarket shares for each of theirs; Newmarket's shareholders, who saw their stock gain four cents to $4.87 on 5.82 million shares, will keep theirs.

The arrangement is nevertheless an acquisition by Kirkland of Newmarket. Once the share swap is complete, the expanded Newmarket will be renamed Kirkland Lake Gold and its stock will be consolidated on a 0.475:1 basis. (The net result of the swapping, renaming and consolidating is that Kirkland Lake's shareholders will have exactly the same number of shares as they previously held, giving them 57 per cent of the excitement, while Newmarket's shareholders will hold a bit less than half of what they currently hold, for the remaining 43 per cent.)

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