At a special meeting on January 28, Kirkland Lake Gold Ltd. shareholders voted overwhelmingly in favor of the proposed acquisition of Detour Gold Corp. They approved the issuance of up to 77,407,217 common shares of Kirkland Lake Gold.
The resolution was approved by approximately 98.99% of votes cast by shareholders.
Detour Gold shareholders also approved the arrangement at a special meeting.
This transaction will add the Detour Lake mine to Kirkland Lake Gold’s portfolio. The open-pit mine in Ontario, Canada, has an estimated production of 590,000 to 605,000 ounces of gold.
President and CEO of Kirkland Lake Gold Tony Makuch said, “Once complete, the transaction will create a highly competitive, truly unique company in the gold mining industry. By combining Detour Lake with our Macassa and Fosterville mines, we will have three cornerstone assets in our two core jurisdictions of Canada and Australia, all three of which possess free cash flow generating operations, significant in-mine growth potential, and considerable regional exploration upside.”
He said the new Kirkland Lake Gold will be a leader in profitability, cash flow generation and cash resources.
Kirkland Lake Gold has the ability to repurchase up to 10% of its common shares in the public float.
The transaction is expected to be completed on January 31, subject to approval by the Ontario Superior Court of Justice.