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Friday, 8 March 2013
Kirkland Lake Gold lists $69 mln convertible debentures, announces London block listing
Kirkland Lake Gold (TSE:KGI)(AIM:KGI) says that its $69 million worth of convertible unsecured subordinated debentures will be listed for trading on the Toronto Stock Exchange, effective today.
The 7.5% convertible debentures were issued under an indenture made as of July 19 last year, and will trade under the symbol "KGI.DB.A".
The debentures, which are issuable in the minimum principal amount of $1,000 each, will be quoted based on $100 principal amounts, the company said, with all trades being made in multiples of $1,000.
They mature on December 31, 2017, unless earlier redeemed, and bear interest that is payable semi-annually.
Until maturity, the debentures can be converted into common shares of the company at a price of $13.70 per share.
The company said the debentures rank subordinate in right of payment of principal and interest to all present and future senior loans and rank "pari-passu" to all present and future unsecured debt.
Kirkland added that it has received conditional approval from the Toronto Stock Exchange to list the common shares that are converted from the debentures.
Seperately, the company announced that it has applied to the London Stock Exchange for a block listing of 8.9 million common shares, to cover up to around 5 million shares that may be issued upon conversion of the debentures mentioned above, and up to 3.8 million shares tied to the conversion of unsecured subordinated debentures.
It is expected that the block listing will become effective on Monday morning London time.
Last month, the gold miner said its production results as of the end of January came in slightly ahead of its planned forecast to sell between 90,000 to 110,000 ounces of gold in fiscal 2013.
For the three months to the end of January, the company said 73,678 tons of ore were produced at its Macassa gold mine in Ontario, at a head grade of 0.32 ounces per ton and a gold recovery rate of 95.66% - to produce 22,261 ounces of gold.
For its fiscal year thus far, 214,678 tons of ore have been produced at the mine, for 60,015 ounces of gold, and 59,648 ounces sold.
The overall production results, Kirkland said, came in slightly ahead of its plan to meet its sale guidance for this year, with plans to increase output in its fourth quarter.
The expected boost came on the heels of the company's announcement in early February that it has completed its service cage project at the Macassa gold mine, which is going to give it the ability to take production from 1,000 tonnes per day to 3,000 tonnes per day over the next 12 months.
Kirkland Lake Gold owns the Macassa property and operating underground gold mine, as well as 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.
Last year, the company added to its portfolio when it completed an acquisition of Queenston Mining Inc.’s (TSE:QMI) 50-per-cent interest in seven joint venture properties in the Kirkland Lake camp for just $60 million.