Kirkland Lake Gold raises stake in Osisko Mining with $19 million purchase

Kirkland Lake Gold has almost doubled its stake in Canada-based Osisko Mining with the acquisition of around 15 million common shares for approximately $US19 million in cash.

The deal gives the mid-tier gold producer a 14% stake in Osisko, up from a previous 8.6%. Kirkland’s shareholding in the precious metals explorer now stands at 32.6 million shares.

“Our strategic investment in Osisko increases our ownership interest in the Urban Barry area of Northwestern Québec, which we believe has become a new, highly prospective mining camp in the Canadian gold mining industry,” said Kirkland’s president and chief executive Tony Makuch.

Kirkland’s Urban Barry Greenfields project covers more than 70,000 hectares in a prospective exhalative terrain in the central and eastern part of the Urban Barry 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,” Makuch continued.

Kirkland is aiming to produce 635,000 ounces of gold this year from its Australian and Canadian mines.