Kirkland’s $4.9-billion purchase of Detour Gold wins shareholder approval NIALL MCGEEMINING REPORTER PUBLISHED 49 MINUTES AGO UPDATED JANUARY 28, 2020 COMMENTS
Shareholders at both Detour Gold Corp and Kirkland Lake Gold Ltd have voted definitively in favour of Kirkland's acquisition of Detour.
The $4.9-billion acquisition was announced in November.
Initially received with shock on the part of many of Kirkland's shareholders, over the past few months, the company managed to win over the skeptics.
The deal sees Kirkland, the most profitable senior gold miner of the past five years, acquire Detour, a single asset miner that has long struggled to mine gold profitably.
By buying Detour, Kirkland will see its average cost to mine an ounce of gold rise, but its reserves will go up materially. Replacing depleting reserves is one of the biggest challenges gold company faces, and goes a long way to explaining why mergers and acquisitions have come roaring back in the gold industry.
Over the past few years, senior gold miners have aggressively started consolidating again, after about seven years of sitting on the sidelines. Barrick Gold Corp. and Newmont Mining have collectively acquired US$16-billion worth of assets since the fall of 2018.
The buyside has also been encouraging single asset miners to seek out suitors. The singletons are struggling exponentially more than seniors in attracting capital, and are widely seen as far too risky for many investors. As part of a larger and better diversified senior, single asset miners generally become a much more attractive investment proposition.
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RELATED TOPICS DETOUR GOLD CORPORATION
KIRKLAND LAKE GOLD LTD.
$GOLD - LT Long Term -
Gold: Massive Bull Flag Breakout -
timetravelerdos thank you, it will be Happy New Years for all Shareholders of Kirkland Lake Gold and Detour Gold Corporation a great fusion and amalgamation by Detours who owns and operates the Detour Lake mine, a long life large-scale open pit operation in the mining-friendly jurisdiction of northern Ontario. Currently, Detour Lake is one of the largest gold producing mines in Canada with production exceeding 600,000 ounces per year and mineral reserves of 15.4 million ounces of gold.
Detour Gold is in a position to deliver long-term shareholder value with its growing cash flow profile, organic growth initiatives, and significant potential for further exploration discoveries on its large land package.
The Company is dedicated to responsible mining and to the highest safety and environment standards while having a strong commitment to the communities we operate and live in.
Kirkland Lake Gold Completes Acquisition of Detour Gold 7 hours ago from Business Wire TORONTO
Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” orthe“Company”)(TSX:KL) (NYSE:KL) (ASX:KLA) and Detour Gold Corporation (TSX: DGC) (“Detour Gold”) are pleased to announce the completion of the previously announced arrangement (the “Arrangement”) whereby Kirkland Lake Gold has acquired all of the issued and outstanding common shares of Detour Gold (the “Detour Shares”).
Pursuant to the Arrangement, Kirkland Lake Gold has acquired 100% of the issued and outstanding Detour Shares and Detour Gold shareholders are entitled to receive 0.4343 of a common share of Kirkland Lake Gold (each whole share, a “Kirkland Share”) in exchange for each Detour Share held immediately prior to closing of the Arrangement. In aggregate, the Company issued approximately 77,217,129 Kirkland Shares under the Arrangement to former Detour Gold shareholders as consideration for their Detour Shares. Upon closing of the Arrangement, existing Kirkland Lake Gold and former Detour Gold shareholders own approximately 73% and 27% of the issued and outstanding Kirkland Shares, respectively.
As a result of the Arrangement, Detour Gold has become a wholly-owned subsidiary of Kirkland Lake Gold and the Detour Shares are anticipated to be de-listed from the Toronto Stock Exchange on or about February 3, 2020.
Full details of the Arrangement and certain other matters are set out in the management information circular of Kirkland Lake Gold and the management information circular of Detour Gold each dated December 20, 2019, copies of which can be found under Kirkland Lake Gold and Detour Gold’s respective profiles on SEDAR at www.sedar.com. A copy of the early warning report of Kirkland Lake Gold in connection with the acquisition of the Detour Shares will be filed under Detour Gold’s profile on SEDAR and can be obtained by contacting Kirkland Lake Gold at the number shown below.
INFORMATION FOR FORMER DETOUR GOLD SHAREHOLDERS
Pursuant to the Arrangement, former Detour Gold shareholders are entitled to receive 0.4343 of a Kirkland Share for each Detour Share held prior to closing of the Arrangement.
In order to receive Kirkland Shares in exchange for Detour Shares, registered shareholders of Detour Gold must complete, sign, date and return the letter of transmittal that was mailed to each Detour Gold shareholder prior to closing. The letter of transmittal is also available under the Detour Gold’s profile on SEDAR at www.sedar.com. For those shareholders of Detour Gold whose Detour Shares are registered in the name of a broker, investment dealer, bank, trust company, trust or other intermediary or nominee, they should contact such nominee for assistance in depositing their Detour Shares and should follow the instructions of such intermediary or nominee.
BOARD OF DIRECTORS
Kirkland Lake Gold also announces that effective as of January 31, 2020, each of Pamela Klessig and Raymond Threlkeld have retired as members of the Company’s board of directors (the “Board”).
Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold, commented: “Pam and Ray have made significant contributions to the advancement of Kirkland Lake Gold. Their advice and counsel has been highly valued during a period of rapid growth and value creation for our company. We wish them all the best going forward and we will miss them.”
ADVISORS AND COUNSEL
RBC Capital Markets, Maxit Capital LP and National Bank Capital Markets acted as financial advisors to Kirkland Lake Gold in connection with the Arrangement and Cassels Brock & Blackwell LLP and Dorsey Whitney LLP acted as Kirkland Lake Gold’s legal advisors.
BMO Capital Markets acted as financial advisor to Detour Gold in connection with the Arrangement. Citi has acted as financial advisor to the Detour Gold special committee in connection with the Arrangement. Stikeman Elliott LLP, Jones Day and Squire Patton Boggs acted as Detour Gold’s legal advisors.
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a growing gold producer operating in Canada and Australia that produced 974,615 ounces in 2019, with target production for 2020 of 950,000 – 1,000,000 ounces. The production profile of the Company is anchored by two high-grade, low-cost operations, including the Macassa Mine located in Northern Ontario and the Fosterville Mine located in the state of Victoria, Australia. Kirkland Lake Gold's solid base of quality assets is complemented by district scale exploration potential, supported by a strong financial position with extensive management expertise.
The registered address of the Company is located at 200 Bay Street, Suite 3120 Toronto, ON M5J 2J1.
Cautionary Note Regarding Forward-Looking Information
This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Kirkland Lake Gold with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and include information regarding: (i) expectations regarding the effects of the Arrangement and the ability of the combined company to successfully achieve business objectives, including integrating the companies or the effects of unexpected costs, liabilities or delays, (ii) the potential benefits and synergies of the Arrangement, (iv) the anticipated date the Detour Gold shares will be delisted from the Toronto Stock Exchange, (iv) expectations regarding further changes to the composition of the Board, and (v) expectations for other economic, business, and/or competitive factors.
Investors are cautioned that forward-looking information is not based on historical facts but instead reflect Kirkland Lake Gold’s management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Kirkland Lake Gold believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability of Kirkland Lake Gold and Detour Gold to successfully integrate their respective operations and employees and realize synergies and cost savings at the times, and to the extent, anticipated; the potential impact on exploration activities; the potential impact of the consummation of the Arrangement on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; the re-rating potential following the consummation of the Arrangement; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation; and the diversion of management time on the integration following completion of the Arrangement. This forward-looking information may be affected by risks and uncertainties in the business of Kirkland Lake Gold and Detour Gold and market conditions. This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in filings made by Kirkland Lake Gold and Detour Gold with the Canadian securities regulators, including Kirkland Lake Gold’s and Detour Gold’s respective annual information forms, financial statements and related MD&A for the financial year ended December 31, 2018, their respective interim financial reports and related MD&A for the period ended September 30, 2019 and their respective management information circulars dated December 20, 2019 filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Kirkland Lake Gold has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Kirkland Lake Gold does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
timetravelerdos thank you, The Detour deal will provide excellent buy opportunities and should be a very good deal LT long term -
What I see is DGC shareholders and some market players cashing out the new shares they got and shorters made moves -
At the end of the day we have the same market cap as pre-merger except now we own 15m ozs , a mine and a lot more ozs we don't know about.
We have got an additional 600k ozs/yr in production.
This is a medium long term steal imho, I am tempted to add another 5k shares here, and my crystal ball reveal a much higher price of the LT gold trend next 5 years -
RevT79 wrote: Kl as got the best deal ever buying detour with is 15 millions oz reserves for.... nothing!!! lol!!!! they print a bunch of paper shares and bought a massive gold producing mines.
rigth now the decrease of the SP is due to detour shareholder weak hands selling there new shares.
How much will those 15 millions oz will be worth in 10 years... it was shown that the grades are higher than expected on the last quarter. this is a great entry point to buy shares.... hopefully investors see the opportunity! glta
RE:$3B of paper gold dumped. GATA on the massive dump. Who smashed gold this afternoon? Let's 'round up the usual suspects'
Submitted by cpowell on 12:39AM ET Tuesday, February 25, 2020. Section: Daily Dispatches 7:52p ET Monday, February 24, 2020
Dear Friend of GATA and Gold:
Somebody seems to have dumped a lot of gold derivatives on the market this afternoon, and Zero Hedge estimates it at $3 billion worth and attributes it to the Bank for International Settlements:
There may not yet be any public evidence tying this particular attack to the BIS, but whoever did it plainly meant to drive the price down rather than to take profits on a long position, since you don't take profits by driving the price down all at once but by selling gradually enough not to crash the price.
And the BIS can't help being one of "the usual suspects" given its many acknowledged interventions throughout history. For example, in 2005 William R. White, the director of the BIS monetary and economic department, told a BIS conference in Basel, Switzerland, that a primary purpose of international central bank cooperation is "the provision of international credits and joint efforts to influence asset prices (especially gold and foreign exchange) in circumstances where this might be thought useful":
The BIS actually advertises to potential central bank members that its services include secret interventions in the gold market. Here's a PowerPoint presentation the bank made to prospective central bank members at BIS headquarters in June 2008:
Indeed, according to its 2013 annual report, the BIS functions largely as a gold banking and gold market intervention service for its member central banks. On Page 110 of that report the BIS says: "The bank transacts foreign exchange and gold on behalf of its customers, thereby providing access to a large liquidity base in the context of, for example, regular rebalancing of reserve portfolios or major changes in reserve currency allocations. The foreign exchange services of the bank encompass spot transactions in major currencies and Special Drawing Rights (SDR) as well as swaps, outright forwards, options, and dual currency deposits (DCDs). In addition, the bank provides gold services such as buying and selling, sight accounts, fixed-term deposits, earmarked accounts, upgrading and refining, and location exchanges." See:
Secret gold market interventions by the BIS have been going on for a long time. A long article in Harper's magazine in 1983, based on a seemingly unprecedented interview with BIS officials, disclosed that the BIS was constantly intervening in the gold market in secret:
GATA consultant Robert Lambourne, probably the only student of the BIS outside central banking itself, documents the bank's monthly interventions in the gold market by interpreting the footnotes in the bank's monthly report. Lambourne's most recent dispatch, analyzing the bank's monthly report issued January 31, disclosed that the bank's interventions in the gold market had reached their highest point in nearly a year:
Three years ago GATA asked the BIS to explain its interventions in the gold market -- their underlying objectives and their real parties in interest. Of course the bank refused to account for itself:
But the BIS doesn't necessarily rig markets for its own advantage. Rather it acts for its members, which include most central banks, to which the BIS gives cover for market interventions.
It would be nice if mainstream financial news organizations made even a nominal effort to preserve their professional dignity by asking the BIS to account for and explain its interventions and by reporting that the bankwon't explain.
But maybe such journalism is no longer necessary. For can there by anyone who follows the gold market who doesn't know by now where the out-of-the-blue smashdowns in the monetary metals come from?
And can anyone who follows the gold market not have noticed that these smashdowns have been losing effect since last June?
Really, if people who follow the gold market can't figure out the purpose and general origin of today's attack and can't understand that an attack this brazen signifies profound weakness and possibly depletion of the real metal central banks are prepared to lose to defend their currencies against the once and future international reserve currency -- well, any such people should apply for jobs at the Financial Times or Kitco.com.
CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. CPowell@GATA.org
Kirkland Lake Gold Amends Normal Course Issuer Bid and Implements Automatic Share Purchase Plan Download this Press ReleasePDF Format (opens in new window) TORONTO, Feb. 20, 2020 (GLOBE NEWSWIRE) --
Kirkland Lake Gold Ltd. (?Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced that in connection with the Company’s previously announced normal course issuer bid (“NCIB”) to purchase up to 20,898,692 of its common shares (the “Shares”), it has entered into an automatic share purchase plan (“ASPP”) with its designated broker. The ASPP is intended to allow for the purchase of Shares under the NCIB at times when the Company may not ordinarily be permitted to purchase Shares due to regulatory restrictions and customary self-imposed blackout periods.
Pursuant to the ASPP, the designated broker may purchase up to 7,000,000 Shares until the expiry of the NCIB on May 28, 2020. Such purchases will be determined by the broker at its sole discretion based on the purchasing parameters set out by the Company in accordance with the rules of the Toronto Stock Exchange (the “TSX”), applicable securities laws and the terms of the ASPP. The ASPP has been pre-cleared by the TSX and will be effective as of February 21, 2020. The ASPP will terminate on the earlier of the date on which: (i) the NCIB expires; (ii) the maximum number of Shares have been purchased under the ASPP; and (iii) the Company terminates the ASPP in accordance with its terms.
Outside of the ASPP, Shares may continue to be purchased under the NCIB based on management’s discretion, in compliance with the rules of the TSX and applicable securities laws. The NCIB commenced on May 29, 2019 and expires on May 28, 2020. The Company expects to renew the NCIB upon expiry. All purchases made under the ASPP will be included in the number of Shares available for purchase under the NCIB.
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a growing gold producer operating in Canada and Australia that produced 974,615 ounces in 2019, with target production for 2020 of 1,470,000 – 1,540,000 ounces. The production profile of the Company is anchored by three high-quality operations, including the Macassa Mine and Detour Lake Mine, both located in Northern Ontario, and the Fosterville Mine located in the state of Victoria, Australia. Kirkland Lake Gold's solid base of quality assets is complemented by district scale exploration potential, supported by a strong financial position with extensive management expertise.
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website
Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced the appointment of Ingrid Hibbard and Peter Grosskopf to the Company’s Board of Directors. The appointments are effective immediately.
Ms. Hibbard has over 30 years of experience spanning all facets of the mineral resources industry. Ms. Hibbard is currently the President, Chief Executive Office and director of Pelangio Exploration Inc., a Canadian exploration company with properties in Canada and Ghana. Ms. Hibbard played a founding role advancing the Detour Lake mine property. She was President of Pelangio-Larder Mines, Limited, which in 1998 acquired Detour Lake from Placer Dome (CLA) Ltd. under a joint venture with Franco-Nevada Mining Company Limited. Pelangio subsequently sold the Detour Lake assets to Detour Gold Corporation in 2007. Ms. Hibbard remained a director of Detour Gold until 2018. Ms. Hibbard also served on the Board of Lake Shore Gold Inc. from 2016 to 2018. Ms. Hibbard holds a BA and a LL.B. from the University of Western Ontario and is called to the Bar in both Ontario and Manitoba.
Peter Grosskopf has more than 30 years of experience in the financial services industry. Mr. Grosskopf is currently Chief Executive Officer and a Director at Sprott Inc., a publicly listed alternative asset manager and a global leader in precious metal and real asset investments. At Sprott, he is responsible for strategy and managing the firm’s private resource investment businesses. His career includes a long tenure in investment banking, where he managed numerous strategic and underwriting transactions for companies in a variety of sectors. Prior to joining Sprott, Mr. Grosskopf was President of Cormark Securities Inc. He has a track record of building and growing successful businesses including Newcrest Capital Inc. (as one of its co-founders), which was acquired by the TD Bank Financial Group in 2000. Mr. Grosskopf is a CFA® charterholder and earned an Honours Degree in Business Administration and a Masters of Business Administration from the Richard Ivey School of Business at the University of Western Ontario.
Jeff Parr, Chairman of the Board of Kirkland Lake Gold, commented: “On behalf of the Board, I’d like to welcome Ingrid and Peter to Kirkland Lake Gold. They bring extensive expertise and knowledge to the Board from their years working in the mining industry that will prove very helpful as we continue to advance the Company’s business plans.”
Tony Makuch, CEO of Kirkland Lake Gold, added: “Ingrid and Peter will add significantly to the broad range of experience of our Board of Directors. Kirkland Lake owns three of the highest-quality gold mines in the world. Fosterville in Australia and Macassa in Northern Ontario are high grade underground mines, while Detour is an open-pit mine in Ontario involving one of the largest gold deposits in the world. All three mines combine substantial free cash flow generation, significant in-mine growth potential and considerable regional exploration upside. We look forward to benefiting from Ingrid and Peter’s expertise as we move these high-quality assets forward towards realizing their full value potential.”
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a growing gold producer operating in Canada and Australia that produced 974,615 ounces in 2019, with target production for 2020 of 1,470,000 – 1,540,000 ounces. The production profile of the Company is anchored by three high-quality operations, including the Macassa Mine and Detour Lake Mine, both located in Northern Ontario, and the Fosterville Mine located in the state of Victoria, Australia. Kirkland Lake Gold's solid base of quality assets is complemented by district scale exploration potential, supported by a strong financial position with extensive management expertise.
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website http://www.klgold.com .
FOR FURTHER INFORMATION PLEASE CONTACT
Anthony Makuch, President, Chief Executive Officer & Director Phone: +1 416-840-7884 E-mail: tmakuch@klgold.com
GlobeNewswire February 24, 2020 - 2:24 PM PST Tags: INDUSTRIAL METALS & MINERALS 1 For further information on Kirkland Lake Gold and to receive news releases by email, visit the website
Eric Sprott discusses the devastating impact the coronavirus is having on the global markets, including for now the precious metals and the mining shares.
Ex. by KL shareholder.... Kirkland Lake Gold (TSX:KL) Quite undervalued -
I added to my position at 31,6 USD. We're down 31,5% from the close prior to the detour merger announcement. Taking the detour valuation as well on 25th of November, we are down 28% in combined market cap. Meanwhile gold is still up 8% since and we had the best Kirkland results ever. And we still have our 707 million dollar pile of cash sitting there, becoming a substantially larger portion of the company valuation as price declines.
The only way this valuation makes sense is if you reason that Fosterville will not increase reserves at all and they'll just scoop up 2,1 million ounces there with a total profit of 2,7 billion and close up shop. In that case we'd have 0.7 billion in cash, 2,7 billion in Fosterville profits and the rest would then be worth 5,8 billion. Detour was already valued at almost 3 billion when gold was 8% lower thus given their high leverage to gold price, i'm just going to lowball and give them a valuation of 3,5 billion. So what remains is 2,3 billion USD of value for Macassa, Holt, Robbins Hill, synergie benefits between detour and macassa operations, the investments in Osisko, Bonterra, Novo amongst others AND any upside potential to fosterville.
I think the market is being irrational and we'll be in the 40's in no time. There is no long term downside risk to this stock at current gold prices. by ftj1408
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website
Ex. by KL shareholder.... Kirkland Lake Gold (TSX:KL) Quite undervalued -
I added to my position at 31,6 USD. We're down 31,5% from the close prior to the detour merger announcement. Taking the detour valuation as well on 25th of November, we are down 28% in combined market cap. Meanwhile gold is still up 8% since and we had the best Kirkland results ever. And we still have our 707 million dollar pile of cash sitting there, becoming a substantially larger portion of the company valuation as price declines.
The only way this valuation makes sense is if you reason that Fosterville will not increase reserves at all and they'll just scoop up 2,1 million ounces there with a total profit of 2,7 billion and close up shop. In that case we'd have 0.7 billion in cash, 2,7 billion in Fosterville profits and the rest would then be worth 5,8 billion. Detour was already valued at almost 3 billion when gold was 8% lower thus given their high leverage to gold price, i'm just going to lowball and give them a valuation of 3,5 billion. So what remains is 2,3 billion USD of value for Macassa, Holt, Robbins Hill, synergie benefits between detour and macassa operations, the investments in Osisko, Bonterra, Novo amongst others AND any upside potential to fosterville.
I think the market is being irrational and we'll be in the 50's in no time.
There is no long term downside risk to this stock at current gold prices. by ftj1408
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website
All the mines that have been developed, around those mines, in Abitibi for example, there’s a lot of potential,” Guilbault told Kitco News on the sidelines of the Xplor Mining Convention in Montreal.
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