Kirkland Lake Gold Ltd has announced it has acquired 14,705,882 common shares of Osisko Mining Inc. by way of private placement financing at a price of $1.31 (CAD$1.70) per Share for a total cash payment of approximately $19.33 (CAD$25 million).
Prior to the Investment, Kirkland Lake Gold held 17,921,750 shares, representing approximately 8.58% of the outstanding shares on a non-diluted basis, which will rise to 32,627,632 shares, representing approximately 13.61% of the currently issued and outstanding Shares on a non-diluted basis. All of the securities issued in the private placement financing are subject to a statutory hold period expiring on January 19, 2019.
The Shares were acquired for investment purposes. Kirkland Lake Gold has a long-term view of the investment and may acquire additional securities either on the open market or through private investments or sell the securities either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.
Tony Makuch, President and CEO of Kirkland Lake Gold, commented: “Our strategic investment in Osisko increases our ownership interest in the Urban Barry area of northwestern Quebec, which we believe has become a new, highly-prospective mining camp in the prolific Abitibi-Greenstone belt. The investment is complementary to our existing interests in Metanor Resources Inc. and Bonterra Resources Inc., both of which have high-potential exploration holdings in the same area. In addition, through the investment in Osisko, we gain exposure to attractive, early-stage exploration properties in close proximity to our Holt and Taylor mines, providing additional value potential around our existing asset base in Ontario.”