Kirkland Lake Gold sells 66% of its shares in Novo Resources for $45M
(Kitco News) – Kirkland Lake Gold (TSX:KL) (NYSE:KL) (ASX:KLA) today announced its intention to sell 18,500,000 units in Novo Resources (TSX.V: NVO) (OTCQX: NSRPF) at a price of $2.45 per unit for gross proceeds to Kirkland Lake Gold of $45,325,000.
The sale transaction is scheduled to close on or about December 3, 2020, or such other date as agreed between Kirkland Lake Gold and the dealers and is subject to certain conditions.
Prior to the sale transaction, Kirkland Lake Gold held 27,885,168 Novo shares, representing and approximate 12.1% interest Novo. Upon closing of the sale transaction, Kirkland Lake Gold will own 9,385,168 Novo shares representing an approximate 4.1% interest in Novo.
The disposition of Novo shares provides an immediate source of capital for the business of Kirkland Lake Gold.
Kirkland Lake Gold is a growing gold producer operating in Canada and Australia that produced 974,615 ounces in 2019. 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.
Novo Resources’ focus is primarily to explore and develop gold projects in the Pilbara region of Western Australia. Novo has amassed a significant land package covering approximately 13,000 sq. km with varying ownership interests. In addition to the company’s primary focus, Novo seeks to leverage its internal geological expertise to deliver value-accretive opportunities for its shareholders. The company's present focus is its Egina gold project, where it is currently exploring and testing innovative exploration techniques under a JV with Japan’s Sumitomo Corporation. Novo also holds 100% interest in the Purdy’s Reward gold project and a 100% interest in the production-ready Beatons Creek gold project which hosts a resource of 457K indicated oz Au at 2.1 g/t and 446K inferred oz Au at 3.2 g/t.