Kirkland Lake Gold raises C$50m to fund mining operations in Ontario

Kirkland Lake Gold has raised C$50 million via a placement of convertible debentures to fund the expansion of its mining operations in Ontario.

The company told inveiron ore concentrate production processpage2stors that a syndicate of underwriters led by Dundee Securities has agreed to buy 50,000 convertible unsecured debentures at a price of C$1,000 per debenture.

The underwriters have also been granted an option to subscribe to up to an additional 15 percent of the offering, which is exercisable up to two days before the closing date of July 19.

These debentures will mature in June 2017 and will have an interest rate of sic percent.

Back in March, Kirkland Lake took full control of seven gold projects in the Kirkland Lake Gold Camp in Ontario by acquiring joint venture partner Queenston's 50 percent interest in the assets.

Kirkland Lake said it would start exploration drilling immediately from both underground and surface on these properties.

Broker Panmure Gordon welcomed the news, saying the move opened up low cost exploration alternatives in this high grade South Mine Complex zone, while reiterating its ‘buy’ recommendation on the stock.

“The economies of scale on offer in the development of such contiguous (and potentially high grade) properties also provide the rationale for the transaction,” said analyst Alison Turner.

“Subject to exploration results we expect this to be a value enhancing deal over the mid term.”