Kirkland Lake Gold (TSX: KGI; US-OTC: KGI) kicked off 2014 with news that it is exploring alternatives to enhance shareholder value that include a potential sale of the company’s shares or assets. The news sent Kirkland Lake’s shares in Toronto down 13%, or 40¢ per share, to close at $2.60.
The company has set up a special committee made up of independent directors to review and evaluate all proposals during the strategic review and noted that Brian Hinchcliffe, who founded the company a decade ago with Harry Dobson, chairman of the board, is resigning as deputy chairman and member of the board.
The strategic review will be carried out alongside a mine plan optimization program that the company unveiled in a corporate update on Dec. 5, which includes a number of cost saving measures and an immediate decision to shut down the lowest grade stopes in an effort to raise the mine head grade.
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