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Tuesday, 20 November 2012
Kirkland Lake Gold lists $57.5 mln of convertible debentures on TSX
Kirkland Lake Gold (TSE:KGI)(AIM:KGI) says it has listed the $57.5 million in convertible unsecured debentures of the company on the Toronto Stock Exchange, effective today.
The 6% debentures, which are issuable in the minimum principal amount of $1,000 each, will be quoted based on $100 principal amounts with all trades being made in multiples of $1,000.
They will trade under the symbol "KGI.DB", and will mature on June 30, 2017, bearing interest to be paid semi-annually on June 30 and December 31 of each year.
The debentures are convertible into common shares of Kirkland Lake, at any time prior to the maturity date, at a price of $15.00 per share.
The company said that conditional approval to list the common shares issued upon conversion has been received from the Toronto Stock Exchange.
An application will also be made to issue the common shares upon conversion to trade on the AIM market of the London Stock Exchange.
Kirkland Lake said that the debentures will rank subordinate to payment of principal and interest on all present and future senior obligations of the company, and rank pari-passu to all current and future unsecured debt.
Kirkland Lake is located in Ontario’s Southern Abitibi gold belt and the gold mining company is based in the historic Kirkland Lake Gold camp, which has produced 22 million ounces of gold in its 100-year history.
Its project consists of the Macassa property and operating underground gold mine, four contiguous gold properties known as the Lake Shore, Wright-Hargreaves, Teck-Hughes and Kirkland Minerals properties and their respective, formerly producing, underground gold mines - collectively called the South Mine Complex – as well as a mill and processing facility.
The company is AIMing for total capital expenditures of about $250 million on its flagship Kirkland Lake Gold project, as well as over a 50-per-cent return on the capital deployed.
The mine’s total reserve and resource base is 2,884,000 tonnes containing 1,473,000 ounces in the proven and probable category grading 17.5 grams per tonne or 0.51 ounces per tonne, 3,433,000 tonnes containing 1,623,000 ounces grading 16.1 grams per tonne or 0.47 ounces per tonne, with an additional 1,970,000 tonnes containing 1,003,000 ounces in the inferred category grading 17.5 grams per tonne or 0.51 ounces per tonne.
Kirkland's three-phase, development and mine refurbishment program is AIMed at increasing production to 250,000 to 300,000 ounces of gold by the start of 2014, and requires relatively low capital expenditures as there is substantial infrastructure already in place.