ONTARIO – Kirkland Lake Gold of the town of the same name has agreed to buy out its joint venture partner Queenston Mining for a total of $60 million.
Queenston held a 50% interest in seven gold projects – including the South Claims, Kirkland Lake West and Gracie West properties – adjacent to KLGold’s South mine complex and Macassa mine and mill near Kirkland Lake.
KLGold has already paid $30 million to Queenston and agreed to pay the balance by the end of the year, subject to the usual regulatory filings and government approvals.
KLGold chairman Harry Dobson, “We are delighted to have completed this strategically important acquisition. We can now press ahead with a more aggressive surface and underground exploration program that supports our vision to build a 5+ million oz gold inventory.”
The company plans to increase its annual gold production rate to between 250,000 and 300,000 oz. See also KLGold.com.v