STADF is Best Gold Stock-NowKirklandBuysIt-YetNoPosts?
I have been posting about STADF being hottest gold stock for weeks, now we know why. KGI.TO is buying them out. Who is KGI.TO? They are bigger and now that we are part of them, this is news from last week. Buyout PR below
Kirkland Lake Gold Inc. (KGI.TO) ("Kirkland Lake Gold" or the "Company"), an operating and exploration gold company, provides an update on the underground exploration drilling program on the South Mine Complex ("SMC") at the Company's Macassa Mine Complex, and in particular on the South Claims (formerly a part of the Queenston Mining Joint Venture property).
The South Claims are located approximately 800 metres south of the #2 shaft at the Macassa Mine Complex, and lie immediately southwest of the HM claim, and hosts a portion of the SMC. Exploration results on the HM claim were recently reported by the Company on October 20th, 2015. This eighteen-hole (6,140 metres or 20,145 feet) drilling program is a continuation of the program detailed in the Company's press release dated January 20th, 2015. This program concentrated on expanding the SMC by testing the New South Zone ("NSZ") and intersected both new and previously identified hanging wall ("HWZ") and footwall zones ("FWZ") to the NSZ.
NSZ intersected in drill hole 53-2891B returned 386.7 grams per tonne ("g/t") uncut, (73.4 g/t cut) or 11.28 ounces per ton ("opt") uncut (2.14 oz/t cut) over a true width of 7.5 metres (24.6 feet). Intersected at the -5653 foot elevation (1,723 metres below surface).
Drill hole 53-2891B returned several high grade intervals including 5,678.8 g/t or (165.63 opt) over a true width of 0.3 metres (1.0 feet), 396.7 g/t (11.57 opt) over a true width of 0.6 metres (2.0 feet) and 1,845.6 g/t (53.83 opt) over a true width of 0.4 metres (1.3 feet). The NSZ remains open to the west and down-dip from this intersection. Drill hole 53-2694A, located 19.8 meters east of 53-2891B returned 25.7 g/t (0.75 opt) over a true width of 3.2 metres 10.6 feet). A previously identified FWZ was intersected in this drill hole and returned 243.4 g/t uncut or 120 g/t cut (7.10 opt uncut or 3.5 opt cut) over a true width of 0.2 metres (0.8 feet).
Kirkland Lake Gold Creates an Ontario-Focused Intermediate Gold Producer With the Acquisition of St Andrew
TORONTO, ONTARIO--(Marketwired - Nov. 16, 2015) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Kirkland Lake Gold Inc. (KGILF) ("Kirkland Lake" ) and St Andrew Goldfields Ltd.(STADF) ("St Andrew") (OTCQX: STADF) are pleased to announce that they have entered into a binding definitive agreement (the "Agreement") whereby Kirkland Lake will acquire all of the outstanding common shares of St Andrew pursuant to a plan of arrangement (the " Transaction") to create a multi-asset, Ontario-focused, intermediate gold producer.
Under the terms of the Agreement, common shareholders of St Andrew will receive 0.0906 of one common share of Kirkland Lake (the "Exchange Ratio") for each St Andrew common share held. The Exchange Ratio represents the equivalent of C$0.47 per St Andrew common share, based on the closing price of Kirkland Lake on November 16, 2015. The Exchange Ratio implies a 46% premium based on both companies' 20-day volume-weighted average prices and a 25% premium to St Andrew's closing price, both as at November 16, 2015 on the Toronto Stock Exchange. The Exchange Ratio implies a total equity value of approximately C$178 million on a fully diluted in-the-money basis.
Upon completion of the proposed Transaction, existing Kirkland Lake and St Andrew shareholders will own approximately 71% and 29% of the combined company, respectively.
Highlights of the Combined Company
-- Diversified production base - Combined entity will operate four mines and
two mills in Ontario's southern Abitibi greenstone belt, one of the
world's most attractive mining jurisdictions;
-- Strong financial position and flexibility - Combined entity will have
increased financial flexibility through the aggregated positive cash
position and anticipated free cash flow;
-- Enhanced scale and capital markets profile - Expected to increase analyst
coverage, enhance share trading liquidity and appeal to a larger
-- Strong production growth profile - Combined entity is expected to produce
260-310 koz gold in 2016 with attractive cash costs between US$600-690/oz
-- Exploration opportunity - Combines two companies with significant
exploration upside in two historically prolific and underexplored camps,
close to existing mine infrastructure;
-- Re-valuation opportunity - Combined entity will have diversified
production and cash flow, a strong balance sheet, and substantial
prospects for significant growth driven by a proven management team,
which creates the opportunity for a re-rating more in line with other
mid-tier gold producers.
George Ogilvie, President & CEO of Kirkland Lake, stated: "This transaction adds high quality assets and ounces to our existing operations and is immediately accretive to our production, net asset value and cash flow on a per share basis. With this acquisition we continue to focus on gold production in proven and safe mining jurisdictions. We believe this creates both financial and operational synergies which will contribute greatly to our continued success."
Duncan Middlemiss, President & CEO of St Andrew, stated: "We are pleased to be combining with another established producer to create a leading intermediate gold producer focused in Canada. St Andrew shareholders will have the opportunity to benefit from the promising potential of the combined company, with greater trading liquidity and capital markets exposure to drive shareholder value. Both St Andrew Goldfields(STADF) and Kirkland Lake Gold(KGILF) are pleased to bring forth a consolidated Abitibi focused company, as we all believe in the huge potential of our assets."