Holt suspension
ORIGINAL: Kirkland Lake Gold Extends Suspension of Operations at Holt Complex
2020-07-16 09:22 ET - News Release
TORONTO, July 16, 2020 (GLOBE NEWSWIRE) -- Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced that the suspension of operations at the Company’s Holt Complex, in effect since April 2, 2020, will be extended until further notice. The Company suspended business activities at the Complex as part of its COVID-19 protocols, and at the same time continued with a strategic review to assess a potential restart of the operations.
The Holt Complex, including the Holt, Taylor and Holloway mines and Holt Mill, was designated as non-core by the Company on February 19, 2020 with the Company planning to consider all options to maximize the value of the assets. The Complex’s high cost structures, low grades, diminishing reserves and requirements for new investments have resulted in significant negative cash flows from these operations, and are key drivers of our decision to extend the suspension of business activities.
Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold, commented: “When we transitioned Holt Complex to suspended operations in early April, our first step was to provide base wages to all affected workers for the first month. We also began working to identify opportunities to re-assign as many employees as possible from the Complex to new roles at other sites within our Canadian Operations. I am pleased to report that, to date, more than 220 employees at Holt Complex, from a total workforce of 475 people, have been re-assigned to new positions, or have recently been offered new roles within the organization. In cases where it is not possible to find alternative employment arrangements, and where employees have been on an extended temporary layoff, we now believe that the best course of action is to provide severance packages.
“Extending the suspension of operations at Holt Complex was a difficult decision. I want to personally thank everyone at the Complex for their efforts and contribution to our company. Going forward, we will continue to review strategic options for the Holt Complex properties, including the potential for additional exploration activities in the area.”
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