TORONTO and VANCOUVER – Kirkland Lake Gold and Newmarket Gold have reached an agreement to merge the two companies, creating a mid-tier producer with annual production of more than 500,000 oz of gold. The combined company will have a market capitalization of approximately $2.4 billion.
The goal of merging the two companies is to create a new low cost gold miner with a diversified production base. KLGold brings to the table its Macassa and South mine complex as well as the Holt, Holloway and Taylor gold mines, all located in northern Ontario. Newmarket’s producers include the Fosterville, Cosmo and Stawell mines in Australia. The combined enterprise will have a cash balance of over $275 million.
The proposed share exchange is explained at www.KLGold.com.