TORONTO – Kirkland Lake Gold has acquired approximately 10.34 million units of Metanor Resources in Val d’Or, Que., for consideration of $0.70 per share or $7.25 million. Each unit consists of one common share of Metanor and one half of one share purchase warrant entitling KLGold to buy additional shares at a price of $0.90 per share until April 21, 2019.
As previously announced by Metanor, the closing of the deal with KLGold is part of an $8.85 million investment that includes another $1.31 million from Wexford Capital. Wexford also received Metanor units under the same terms as KLGold.
At the close of the arrangement, KLGold says it owns approximately 10.36 million shares and 5.18 million warrants of Metanor, giving KLGold a 13.7% interest in Metanor.
Overview of the Barry project showing the pit (foreground) and the area of the latest discovery (background).
Metanor operates the producing Bachelor gold mine 225 km northeast of Val d’Or, Que. The company is also testing the Barry advanced exploration project 115 km south of the Bachelor mine. The Barry project has measured and indicated resources of 8.42 million tonnes grading 1.13 g/t gold and inferred resources of 13.92 million tonnes grading 1.02 g/t.
More information about the Barry project is available at www.Metanor.ca.