ONTARIO – Kirkland Lake Gold (KL Gold) has closed a private placement of 6% convertible unsecured subordinated debentures worth $57.5 million. The amount includes the overallotment taken up by the underwriters. The money will be used to expand the company’s gold mining operations in Kirkland Lake.
Over the next year KL Gold will increase its production rate to 2,000 tonnes of ore per day. During fiscal years 2014 to 2016, the property will produce between 250,000 and 300,000 oz of gold. The operation was expanded to approximately 700 t/d in 2010, and it will double again to approximately 1,500 t/d in August 2012.
The third expansion will be complete in May 2013. A larger crusher and new screen deck will be installed. A second fine ore bin will be built. A second primary ball mill will be installed and the cyclones replaced. Stripping capacity will be added to the back end of the mill. To feed the expanded plant, hoisting capacity will reach roughly 3,000 t/d at the end of shaft refurbishment. The mine is also the site of ongoing refurbishment and redevelopment programs.
Additional information about KL Gold is posted at KLGold.com.