Dual-listed Kirkland Lake has announced its intention to sell 18.5-million units in Novo Resources for gross proceeds of $45.33-million.
Prior to the transaction, announced on Thursday, Kirkland Lake held 27 885 168 Novo shares, representing an interest of about 12.1% in the Pilbara-focused explorer. Upon closing of the sale, Kirkland Lake would own 9 385 168 shares, or about 4.1%.
Should the warrants forming part of the units be exercised in full, Kirkland would dispose of an additional 9 250 000 Novo shares, for additional gross proceeds of $25.9-million.
This further disposition would result in an additional decrease in Kirkland’s shareholdings in Novo, resulting in Kirkland holding only about 0.05% of the currently issued and outstanding Novo shares.
Kirkland said that the disposition of Novo shares provided an immediate source of capital for its business.