Kirkland Lake Gold Announces Sale of Novo Shares and Warrants - Seite 2

Upon closing of the Sale Transaction and assuming the sale of the Warrants in full, Kirkland Lake Gold will own 135,168 Novo Shares. Kirkland Lake Gold has agreed with the Dealers that its remaining Novo Shares will be subject to a 30-day lock-up period, subject to customary exceptions. 

Early Warning Disclosure

Upon closing of the Sale Transaction, Kirkland Lake Gold will have sold 18,500,000 Novo Shares as a component of the Units. The sale of Units will provide aggregate gross proceeds in the amount of $45,325,000. The sales of the Units will be made by block trade to the Dealers.

Prior to the Sale Transaction, Kirkland Lake Gold held 27,885,168 Novo Shares, representing and approximate 12.1% interest Novo.  Upon closing of the Sale Transaction, Kirkland Lake Gold will own 9,385,168 Novo Shares representing an approximate 4.1% interest in Novo. 

In the event that the Warrants forming part of the Units are exercised in full, Kirkland will dispose of an additional 9,250,000 Novo Shares at a value of $2.80 per Novo Share (being the exercise price of the Warrants), for additional gross proceeds to Kirkland Lake Gold of $25,900,000. This further disposition will result in an additional decrease in Kirkland’s shareholdings in Novo, resulting in Kirkland Lake Gold holding 135,168 Novo Shares, representing approximately 0.05% of the currently issued and outstanding Novo Shares.

The disposition of Novo Shares provides an immediate source of capital for the business of Kirkland Lake Gold.  While Kirkland Lake Gold currently has no immediate plans or intentions with respect to the Novo Shares, depending on market conditions, general economic and industry conditions, trading prices of the Novo Shares, Kirkland Lake Gold’s business, financial condition and prospects and/or other relevant factors including Kirkland’s financial position and liquidity, Kirkland Lake Gold may develop such plans or intentions in the future and, at such time, may from time to time acquire additional securities, dispose of some or all of the existing or additional securities or may continue to hold securities of Novo.

Kirkland Lake Gold will file an early warning report under National Instrument 62-103 in connection with the closing of the Sale Transaction.  As Kirkland Lake Gold will have decreased its security holdings in Novo below 10%, following the above-noted early warning report filing, it will no longer be required to report under the early warning requirements of National Instrument 62-104 – Take-Over Bids and Issuer Bids, unless its security holdings in Novo increases to 10% or more in the future.