04:38:09 EDT Sat 26 Sep 2020
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Kirkland Lake Gold Ltd
Symbol KL
Shares Issued 210,189,007
Close 2019-11-25 C$ 52.38
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Globe says Kirkland Lake buying Detour Gold

2019-11-26 07:37 ET - In the News

Also In the News (C-DGC) Detour Gold Corp

The Globe and Mail reports in its Tuesday, Nov. 26, edition that Kirkland Lake Gold is buying Detour Gold in an all-stock deal worth $4.9-billion. The Globe's Niall McGee writes that Kirkland is paying 0.4343-a-share for each Detour share, a 24-per-cent premium to Friday's closing price. That premium all but vanished in trading Monday. The transaction sees Kirkland add another major asset in a safe jurisdiction. Thanks to the success of Kirkland Lake's Fosterville mine in Australia, it has been the best-performing major gold stock in the world over the past few years. Kirkland's Achilles heel though has been its relatively low reserves, compared with other major miners, and some analysts had urged it to make an acquisition to address those concerns. Detour Lake's cornerstone mine in Ontario is low-grade but among the biggest producers in Canada, with yearly production of about 600,000 ounces a year. The Detour Lake acquisition adds about eight years to Kirkland Lake's reserves. Detour Lake had been a perennial underperformer, but it has shown signs of improvement in the past few quarters with cost improvements kicking in. It is, however, still a high-cost operation, compared with industry peers.

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