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Kirkland Lake Gold buying Detour Gold in deal worth $4.9 billion

Kirkland Lake Gold is in the process of buying Detour Gold, and the all-share deal is worth $4.9 billion.  
CBC News ·
"The acquisition of Detour Gold is an excellent fit for Kirkland Lake Gold," said Kirkland President and CEO Tony Makuch in a release. "Detour Lake will provide the pro forma company with a 20-plus year mine life which provides unparalleled optionality and excellent growth potential for the benefit of all shareholders... we will continue efforts to optimize current operations and commence engineering work to evaluate expansion opportunities at Detour Lake, which we anticipate could lead to significant production growth, improved unit costs and higher levels of mineral reserves and mineral resources." (Shutterstock)

Kirkland Lake Gold is in the process of buying Detour Gold. 

The all-share deal is worth $4.9 billion, and values Detour shares at $27.50 apiece.  

Both companies operate in the northeast. 

Kirkland Lake Gold has operations in both Kirkland Lake and Matheson. Detour Gold has an operational gold mine about 300 kilometres northeast of Timmins. 

Once the deal is completed, existing Kirkland Lake Gold shareholders will own about 73 per cent of the combined company, while Detour Gold shareholders will hold about 27 per cent.

"The addition of Detour Lake provides an opportunity to add a third cornerstone asset that is located in our backyard," Tony Makuch, chief executive officer of Kirkland Lake Gold, said in a statement.

The deal requires approval by a two-thirds majority vote by Detour Gold shareholders and a majority vote by Kirkland Lake Gold shareholders, in addition to regulatory and court approvals.
        
 

The Canadian Press

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