Kirkland Lake Gold Inc. (TSX: KLG) ("Kirkland Lake Gold", or "KL Gold") and Newmarket Gold Inc. (TSX: NMI) ("Newmarket") are pleased to announce that shareholders of the respective companies have overwhelmingly voted in favour of the plan of arrangement (the "Arrangement") to merge the two companies, creating an exciting new mid-tier gold company.
Kirkland Lake Gold Voting Results
89,219,450 common shares of Kirkland Lake Gold, representing 75.93% of Kirkland Lake Gold's issued and outstanding common shares were voted at the meeting of KL Gold shareholders held earlier today. The Arrangement was approved by 82.64% of the votes cast by Kirkland Lake Gold shareholders. A copy of the complete report on voting will be made available under Kirkland Lake Gold's profile on SEDAR at www.sedar.com.
Newmarket Voting Results
The issuance of common shares of Newmarket as consideration under the Arrangement was approved by 99.79% of the votes cast by Newmarket shareholders at the meeting of Newmarket shareholders held earlier today.
In addition, the amendment to Newmarket's articles to change its name to Kirkland Lake Gold Ltd. was approved by 99.60% of the votes cast by Newmarket shareholders, the amendment to Newmarket's articles to effect a share consolidation on the basis of 0.475 of a new Newmarket share for every one existing Newmarket share was approved by 99.51% of the votes cast by Newmarket shareholders, the resolution setting the board of directors of Newmarket at nine directors was approved by 99.52% of the votes cast by Newmarket shareholders, the resolution authorizing the board of directors of Newmarket to determine the size of the board of Newmarket from time to time was approved by 99.68% of the votes cast by Newmarket shareholders and each of the following nominees was elected as a director of Newmarket upon completion of the Arrangement:
| Director's name | Votes For | Votes Withheld | ||
| Number | % | Number | % | |
| Anthony Makuch | 134,914,451 | 99.79% | 285,878 | 0.21% |
| Maryse Belanger | 134,804,005 | 99.71% | 396,324 | 0.29% |
| Jon Gill | 134,814,207 | 99.71% | 386,122 | 0.29% |
| Arnold Klassen | 134,809,441 | 99.71% | 390,888 | 0.29% |
| Pamela Klessig | 134,804,887 | 99.71% | 395,442 | 0.29% |
| Barry Olsen | 134,842,754 | 99.74% | 357,575 | 0.26% |
| Jeffrey Parr | 134,837,541 | 99.73% | 362,788 | 0.27% |
| Eric Sprott | 134,905,148 | 99.78% | 295,181 | 0.22% |
| Raymond Threlkeld | 134,956,730 | 99.82% | 243,599 | 0.18% |
A copy of the complete report on voting will be made available under Newmarket's profile on SEDAR at www.sedar.com.
As previously disclosed, the Arrangement is expected to close on November 30, 2016, subject to applicable court approvals and the satisfaction of other customary conditions.
Tony Makuch, President and CEO of Kirkland Lake Gold, said, "On closing, KL Gold will be the next mid-tier gold company with annual production of over 500,000 ozs from world class underground gold mines in Canada and Australia, and one of the lowest cost profiles in the industry. In addition to solid production and low cost operations, we have exciting exploration potential across all of our properties to unlock further value. We wish to thank the shareholders of both Kirkland Lake Gold and Newmarket for their support of this combination and going forward."
Douglas Forster, President and CEO of Newmarket, stated: "The Fosterville mine continues to deliver impressive exploration success leading to record mill grades and increased production and we are confident that Fosterville will remain a high-grade producer for many years. I would like to thank our shareholders for their tremendous support and I am confident that they will be rewarded by the value creation potential of the combined company. I also wish to extend a profound thank you to all of our dedicated employees and business partners and our Board of Directors for their efforts in making Newmarket a tremendous success."
About Kirkland Lake Gold
Kirkland Lake Gold is an intermediate gold producer with assets in the historic Kirkland Lake gold camp, and east of the Timmins gold camp along the Porcupine-Destor Fault Zone, both in northeastern Ontario. Kirkland Lake Gold is currently targeting annual gold production of between 280,000 to 290,000 ounces from its cornerstone asset, the Macassa Mine Complex and the Holt Mine Complex which includes the Holt, Holloway and Taylor mines.
Kirkland Lake Gold is committed to building a sustainable mining company that is recognized as a safe and responsible gold producer with quality assets in safe mining jurisdictions.
About Newmarket
Newmarket is a Canadian listed gold producer with three 100% owned underground operating mines in Australia. The flagship operation, Fosterville Gold Mine, and the Stawell Gold Mine are located in the state of Victoria, and the Cosmo Gold Mine is located in the Northern Territory. In addition, Newmarket has a pipeline of growth projects within Australia, including The Maud Creek Gold Project in the Northern Territory and the Big Hill Gold Project in the state of Victoria. Newmarket is based on a strong foundation of quality gold production from its three Australian mines, producing over 220,000 ounces of gold annually. Newmarket is dedicated to the development of its resources, targeted exploration, and prudent cost management practices, while continuing to generate free cash flow and maintaining a large resource base with reserve upside. Newmarket strives to enhance shareholder value through a disciplined approach to growth, focused on organic exploration success on near mine targets and accretive acquisition opportunities in stable mining jurisdictions.
