September 29, 2016 - 7:16 AM
TORONTO - Kirkland Lake Gold Inc. (TSX:KLG) and Vancouver-based Newmarket Gold Inc. (TSX:NMI) announced a merger deal Thursday to create a new mid-tier producer.
The proposed agreement would result in a company with a market capitalization of $2.4 billion that can produce about 500,000 ounces of gold annually.
The combined company, which will be called Kirkland Lake Gold. will have seven mines and five mills in Canada and Australia.
Toronto-based Kirkland Lake has its flagship operation in Ontario at the Macassa mine complex while Newmarket's main projects are in Australia.
Kirkland Lake's current shareholders will own about 57 per cent of the merged company, with the remaining 43 per cent to be held by Newmarket's investors.
News from © The Canadian Press, 2016