With us today is Frank C. Smeenk President & Chief Executive Officer of KWG Resources Inc. Mr. Smeenk discusses recent conversation with Noront Resources after proposed acquisition of Cliffs Chromite was announced.
Kirkland Lake Gold Closes C$7.5 Million Flow Through Financing
KIRKLAND LAKE, ONTARIO--(Marketwired - July 3, 2014) - Kirkland Lake Gold Inc. (the "Company") (TSX:KGI) (AIM:KGI), an operating and exploration gold mining company, today announces the closing of its previously announced flow-through financing for gross proceeds of C$7.5 million (the "Offering"). National Bank Financial ("NBF") acted as lead underwriter in connection with the Offering. The Company issued an aggregate of 1,923,205 common shares (the "Offered Shares") at a price of C$3.90 per Offered Share (including 128,205 Offered Shares issued pursuant to the exercise of NBF's option).
Application has been made to the AIM Market of the London Stock Exchange for the Offered Shares issued pursuant to the Offering to be admitted for trading commencing on July 7, 2014. The Offered Shares will rank pari passu in all respects with the existing issued shares. Following admission, the increased issued share capital of the Company will be 72,074,117 common shares.
It is expected that trading of the Offered Shares issued under the Offering will commence on the Toronto Stock Exchange following the expiry of the four month hold period applicable under Canadian securities legislation.
Kirkland Lake intends to use the net proceeds to advance its surface exploration program.
About the Company
Kirkland Lake Gold's corporate goal is to create a self-sustaining and long-lived intermediate gold mining company based in the historic Kirkland Lake Gold Camp. The Company plans to do this by mining to the reserve grade, generating profits and free cash flow for the shareholders. The Company will also look to take advantage of its increased infrastructure capacity in the appropriate gold price environment. At the same time, the Company is committed to maintaining a significant exploration program aimed at developing and maintaining a property wide reserve and resource base sufficient to sustain a mine life of more than ten years. Over the last several years, the Company has invested significant capital to improve the infrastructure of the business including upgrading the production hoist, skips, mill, underground mobile equipment and capital development. From initial discovery to present day, there have been over 24 million ounces of gold mined from the Kirkland Lake camp while the current reserve and resource provides for more than 10 years of mining with significant exploration upside.