ONTARIO – Kirkland Lake Gold, of the northern Ontario city of the same name, is raising $60 million through the private placement of convertible debentures. Dundee Securities and CIBC are co-lead underwriters and have agreed to purchase 60,000 convertible unsecured subordinated debentures at a price of $1,000 per debenture. The underwriters have been granted an over-allotment worth a further $9 million.
The debentures will mature on Dec. 31, 2017 (unless redeemed earlier), and they will bear interest at a rate of 7.5% accruing semi-annually. The offering is expected to close in the first week of November this year.
KLGold will use the net proceeds to fund expansion of its gold mining operations in Kirkland Lake and to make payments to Queenston Mining related to the purchase Queenston’s joint venture interests in seven gold projects including the South Claims, Kirkland Lake West and Gracie West properties that are adjacent to KLGold’s South mine complex and Macassa mine and mill.
To learn more about KLGold’s activities, visit KLGold.com.