Kirkland Lake Gold Announces Closing of Sale of Novo Shares and Warrants
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
TORONTO, Dec. 03, 2020 (GLOBE NEWSWIRE) -- Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced it has closed its previously announced sale of 18,450,000 common shares (each, a “Share”) of Novo Resources Corp. (“Novo”) and 9,225,000 warrants of Kirkland Lake Gold (each, a “Warrant”) to purchase Shares to qualified purchasers for gross proceeds to Kirkland Lake Gold in the amount of $45,202,500 (the “Sale Transaction”). The Shares and Warrants were sold through Stifel GMP and Clarus Securities Inc.
Each Warrant entitles the holder thereof to acquire one additional Share owned by Kirkland Lake Gold at an exercise price of $2.80 for a term of 12 months expiring on December 3, 2021. In the event all Warrants are exercised, an additional $25,830,000 will be paid to Kirkland Lake Gold, for total gross proceeds of $71,032,500.
The securities sold and to be sold under the Sale Transaction have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly, may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) or a person in the United States, except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
Early Warning Disclosure
Kirkland Lake Gold disposed of an aggregate of 18,450,000 Shares pursuant to the Sale Transaction at an attributed value of $2.45 per Share (attributing the full unit value of $2.45 to the Share component of the unit and nil value to the Warrant component of the unit) for aggregate gross proceeds of $45,202,500. Prior to completion of the Sale Transaction, Kirkland Lake Gold held 27,675,168 Shares, representing approximately 12.1% of the outstanding Shares on a non-diluted basis. Upon completion of the Sale Transaction, Kirkland Lake Gold owns 9,225,168 Shares, representing approximately 4% of the outstanding Shares on a non-diluted basis, representing a decrease in Kirkland Lake Gold’s shareholdings in Novo of approximately 7.9%.