VANCOUVER (miningweekly.com) – TSX-listed Kirkland Lake Gold has completed the acquisition of St Andrew Goldfields, creating a new midtier Ontario-focused gold producer.
St Andrew became a wholly-owned subsidiary of Kirkland Lake, after shareholders received 0.0906 of a common share of Kirkland Lake for each St Andrew share held.
Kirkland Lake issued a total of 33.36-million common shares to the former shareholders of St Andrew, giving former St Andrew shareholders about a 29% stake in Kirkland Lake on an undiluted basis.
The combined entity now operated four mines and two mills in Ontario's southern Abitibi greenstone belt, one of the world's most attractive mining jurisdictions. The company was expected to produce between 260 000 oz and 310 000 oz of gold in 2016, with cash costs estimated to range between $600/oz and $690/oz of gold.
“With diversified gold production from four mines, increased financial flexibility through the aggregate-positive cash position and the large underexplored land position, Kirkland Lake Gold is uniquely positioned for future success. Uniting our companies will create significant opportunities, allowing us to become stronger together especially in these challenging times,” stated Kirkland Lake president and CEO George Ogilvie.
Under terms of the plan of arrangement, a member of the former St Andrew board, Michael Churchill, was appointed to the Kirkland Lake board with immediate effect.