TORONTO, ONTARIO--(Marketwired - Nov. 18, 2016) - Kirkland Lake Gold Inc. ("Kirkland Lake Gold") (TSX:KLG) would like to thank shareholders for their support of the proposed business combination with Newmarket Gold Inc. ("Newmarket") and reminds those shareholders that haven't yet voted, to vote FOR the Newmarket transaction before 10:00 a.m. (Toronto time) on November 23, 2016.
"We thank shareholders who have already voted in favour of the Newmarket transaction and remind those who haven't that your vote matters regardless of how many shares you own. Kirkland Lake Gold's business combination with Newmarket is about more than just the combination of two assets, it is about leveraging the combined technical expertise, cash flow and financial strength over the long term. We believe this combination will result in an improved market presence and positions the combined company as a new low-cost, mid-tier producer that provides a compelling value proposition for shareholders," said Tony Makuch, President and CEO of Kirkland Lake Gold.
The Newmarket Merger is Best for Long-Term Value Creation
The business combination between Kirkland Lake Gold and Newmarket is the only offer before shareholders. The Company believes that it presents a clear and compelling opportunity to create sustainable long-term growth which will result in increased shareholder value for Kirkland Lake Gold shareholders. Key benefits for shareholders include:
- Creation of a new low-cost, diversified mid-tier gold producer. The business combination with Newmarket is anticipated to result in the creation of a larger, more diversified company with a portfolio of high-quality assets including 7 mines and 5 mills, all located in stable, mining friendly jurisdictions. The pro forma company is expected to produce over 500,000 ounces of gold in 2016. The increased and diversified production profile in conjunction with the aggregated reserves of the combined company should provide shareholders with enhanced leverage to the price of gold.
- Attractive production profile anchored by three high-grade, low-cost operations. The combined company is expected to have a significant and growing gold production profile. Production will be anchored by the Macassa, Fosterville and Taylor mines. Combined production in 2016 from these three mines alone is expected to be over 330,000 ounces, with cash costs of under US$600/oz and AISC below US$800/oz.
- Driving growth in two world class mining jurisdictions. The combined company will be well positioned for sustainable growth through exploration potential in underexplored, well established gold camps in Australia and Canada. The combination creates a second operating platform to further evaluate growth opportunities in another stable mining jurisdiction supported by a strengthened balance sheet. The expected cash flow generation of the combined company can support accelerated exploration, development and/or investments to increase production.
- Stronger financial position. The combined company will have a stronger financial position and greater cash resources than Kirkland Lake Gold alone. Based on Q3, 2016 financial reporting for the nine months ending September 30, 2016, on a pro forma basis Newmarket and Kirkland Lake Gold have a combined cash position of approximately $320 million and the combined company is expected to generate significant free cash flow, which will provide greater financial strength and flexibility. In addition, the combined company will have the ability to cross pollinate best practices to drive cost savings across its portfolio.
In addition, shareholders are reminded that the leading independent proxy advisory firms, Institutional Shareholder Services Inc. and Glass, Lewis & Co., LLC, reaffirmed their recommendations that shareholders of Kirkland Lake Gold vote in favour of the proposed business combination with Newmarket.
How To Vote
Kirkland Lake Gold shareholders with questions or that need help with voting are encouraged to contact Kingsdale Shareholder Services at 1-877-659-1824 toll-free within North America, or 1-416-867-2272 (for collect calls outside North America), or e-mail at email@example.com. Shareholders must vote their proxies before 10:00 a.m. (Toronto time) on November 23, 2016.
About Kirkland Lake Gold Inc.
Kirkland Lake Gold is a Canadian focused, 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. The company 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.
The company 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.
The Toronto Stock Exchange has neither reviewed nor accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Information
This press release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Kirkland Lake Gold with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and include information regarding: (i) expectations regarding whether the proposed transaction with Newmarket will be consummated, including whether conditions to the consummation of the transaction will be satisfied, or the timing for completing the transaction, (ii) expectations for the effects of the transaction or the ability of the combined company to successfully achieve business objectives, including integrating the companies or the effects of unexpected costs, liabilities or delays, (iii) the potential benefits and synergies of the transaction with Newmarket and (iv) expectations for other economic, business, and/or competitive factors.
Investors are cautioned that forward-looking information is not based on historical facts but instead reflect Kirkland Lake Gold's management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Kirkland Lake Gold believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability to consummate the transaction with Newmarket; the ability to obtain requisite regulatory and shareholder approvals and the satisfaction of other conditions to the consummation of the transaction on the proposed terms and schedule; the ability of Kirkland Lake Gold and Newmarket to successfully integrate their respective operations and employees and realize synergies and cost savings at the times, and to the extent, anticipated; the potential impact on exploration activities; the potential impact of the announcement or consummation of the transaction on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; the re-rating potential following the consummation of the transaction; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation; and the diversion of management time on the transaction. This forward-looking information may be affected by risks and uncertainties in the business of Kirkland Lake Gold and market conditions. This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in filings made by Kirkland Lake Gold with the Canadian securities regulators, including Kirkland Lake Gold's annual information form, financial statements and related MD&A for the financial year ended December 31, 2015 and its interim financial reports and related MD&A for the period ended September 30, 2016 filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Kirkland Lake Gold has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Kirkland Lake Gold does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.