22 May Kirkland Lake Gold partners with Canadian junior Melkior Resources
TSXV-listed junior Melkior Resources has secured a strategic partnership with Kirkland Lake Gold which could allow the latter to earn up to a 50% interest in the former’s flagship gold project in the Timmins gold camp of Ontario.
Kirkland Lake – a mid-tier gold producer with mines in Canada and Australia – will invest C$1 million in a non-brokered private placement for up to 1.25 million units of Melkior, giving it a 9.9% stake in the firm.
In addition, Kirkland has the option to earn up to a 50% interest in the Carscallen project over five years, and upon completion of an earn-in agreement and the formation of a joint venture, it will have the right to acquire an additional 25% interest in the project over a further five-year period.
“We are extremely proud to announce this landmark equity investment and potential joint venture agreement with one of the world’s most respected gold mining companies,” Melkior’s CEO Jonathon Deluce said.
“We believe this may provide our shareholders with the upside of discovery with limited share dilution to advance the property.”
Kirkland Lake owns three existing gold properties in Ontario and has investments in other Canada-based miners such as Osisko Mining.