30 Sep Kirkland Lake Gold announces $764m Newmarket acquisition
Kirkland Lake Gold (TSX:KLG) is acquiring fellow gold miner Newmarket Gold (TSX:NMI) in an all-stock deal worth around US$764 million.
Following completion Kirkland shareholders will own about 57% of the merged company, which will keep Kirkland Lake Gold as its name, Newmarket will hold the rest.
The companies said the transaction aims to create a new mid-tier gold company with a market capitalisation of around $1.8 billion and combined annual production of over 500,000 ounces.
“The combination with Newmarket is a very attractive opportunity for our shareholders. The potential that exists at Macassa as we continue to access higher grade mineralization in the South Mine Complex at depth will be complemented by Fosterville, a high-grade operation with exceptional successful drilling results,” said Kirkland Lake Gold CEO and president Tony Makuch.
“We see several opportunities to grow this company within the expanded portfolio, where the combined teams will have the financial and technical capabilities to execute on our progressive growth strategy.”
Douglas Forster, president and CEO of Newmarket stated: “The transaction with Kirkland Lake Gold accomplishes Newmarket’s goal of becoming a quality, low cost +500,000 ounce per year gold producer while providing our shareholders with an immediate premium on their shares.
“The combination of our two flagship mines, Fosterville and Macassa, will be the cornerstone of an exciting new mid-tier gold producer with an attractive growth profile and operations in two of the best mining jurisdictions in the world.”