Mr. Tony Makuch reports
KIRKLAND LAKE GOLD SHAREHOLDERS OVERWHELMINGLY APPROVE DETOUR GOLD ACQUISITION
At a special meeting of shareholders held earlier today, Kirkland Lake Gold Ltd. shareholders voted overwhelmingly in favour of the resolution approving the issuance of up to 77,407,217 common shares of Kirkland Lake Gold in connection with the proposed acquisition of Detour Gold Corp. by way of a plan of arrangement.
Of Kirkland's shares, 155,221,082, representing 74.05 per cent 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 per cent 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 and on EDGAR.
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 per cent 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 Jan. 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 Dec. 20, 2019, and visit the company's website.
About Kirkland Lake Gold Ltd.
Kirkland Lake 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 to one million 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.
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