TORONTO, Dec. 11, 2017 (GLOBE NEWSWIRE) -- Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) is pleased to announce that it has entered into a share sale agreement with an affiliate of Arete Capital Partners Ltd. (“Arete”), pursuant to which Arete will acquire all of the issued and outstanding common shares of Stawell Gold Mines Pty Ltd. which holds the Stawell Gold Mine located in the State of Victoria, Australia.
Pursuant to the terms of the agreement, the Company will receive US$6.25 million in cash consideration and will retain a 2.5% net smelter return royalty (“NSR”) on the Stawell mine.
Tony Makuch, President and CEO, Kirkland Lake Gold, commented: “This transaction is consistent with our long-term strategy to focus on our low-cost, high-grade core assets while simultaneously providing Kirkland Lake Gold with continued exposure to the project through the NSR. We believe the management team at Arete is well positioned to optimize the operational potential of Stawell in a sustainable manner to create value. I would like to thank the entire team at Stawell for their dedication and commitment over the years along with the strong support received from the local Victorian Government in Australia.”
Closing of the transaction is expected to occur on or before December 22, 2017, and is subject to certain customary closing conditions.
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a mid-tier gold producer with 2017 target production of 580,000 to 595,000 ounces from mines in Canada and Australia. The production profile of the company is anchored from two high-grade, low-cost operations, including the Macassa Mine located in northeastern Ontario and the Fosterville Mine located in the state of Victoria, Australia. Kirkland Lake Gold's solid base of quality assets is complemented by district scale exploration potential, supported by a strong financial position with extensive management and operational expertise.
