Midtier gold producer Kirkland Lake has increased its shareholding in TSX-listed Osisko Mining, through which it has exposure to the Urban Barry area of north-western Quebec.
The company acquired 14 705 882 common shares of Osisko by way of a private placement at C$1.70 a share, for a total cash payment of about C$$25-million. This increased its interest in the explorer from about 8.58% to about 13.61%.
Kirkland president and CEO Tony Makuch said on Tuesday that the Urban Barry area had the potential to become a new high-prospective mining camp in the prolific Abitibi greenstone belt.
“The investment is complementary to our existing interests in Metanor Resources and Bonterra Resources, both of which have high-potential exploration holdings in the same area,” he stated.
In addition, through the investment in Osisko, Kirkland gained exposure to attractive, early-stage exploration properties in close proximity to its Holt and Taylor mines.