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Melkior and Kirkland Lake the ‘perfect fit’

21st May 2020

By: Creamer Media Reporter

     

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Timmins-focused Melkior Resources on Wednesday unveiled an equity investment and potential joint venture (JV) agreement with gold miner Kirkland Lake Gold, which the junior’s CEO sees as the “perfect fit”.

Melkior will raise C$1-million by way of a nonbrokered private placement to Kirkland of up to 1.25-million units at a price of C$0.80 each.

Each unit will be comprised of one common share of Melkior and one common share purchase warrant entitling Kirkland to acquire a Melkior share for C$1.20 a share for a period of two years from the closing of the financing.

In addition, the parties have entered into a nonbinding term sheet pursuant to which Kirkland may acquire an option on the company's Carscallen property, located 25 km west of Timmins.

Upon entering into definitive agreements, Kirkland would have the right to earn up to a 50% interest in the property over a five-year period upon incurring certain exploration expenditures. Upon completion of the earn-in and formation of a JV, Kirkland would retain the right to acquire a further 25% interest in the property over a subsequent five-year period upon incurring additional exploration expenditures.

Melkior CEO Jonathon Deluce described the strategic investment as a “landmark agreement”, which would provide shareholders with the upside of discovery with limited share dilution to advance the property.

“Kirkland Lake Gold CEO Tony Makuch was president and CEO of Lake Shore Gold, from 2008 until its acquisition by Tahoe Resources in 2016. The operation was later acquired again by Pan American Silver, which shares a 9 km border with our Carscallen gold project.

“Mr. Makuch and his technical team have a comprehensive understanding of the geological setting within the Timmins gold camp, which we felt as a board made this the perfect fit,” said Deluce.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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