Kirkland Lake Gold announces strategic review and board resignation - InfoNews

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Kirkland Lake Gold announces strategic review and board resignation

Molten gold is poured into a bar in a May 2010 company photo. THE CANADIAN PRESS/HO, Kirkland Lake Gold
January 06, 2014 - 12:40 AM

KIRKLAND LAKE, Ont. - Kirkland Lake Gold Inc. (TSX:KGI) says its board of directors has launched a strategic review of the company which may include the potential sale of shares or assets.

Chief executive officer George Ogilvie said in a statement early Monday that the review, along with a mine plan optimization program announced last month, is designed for the "enhancement of shareholder value."

The board has appointed a special committee comprised of independent directors to review and evaluate various proposals and make recommendations to the board.

National Bank Financial and Stikeman Elliott LLP have been retained to advise the company during this process.

The company says there is no guarantee that its efforts will lead to any changes, adding it does not plan to disclose further developments unless and until the board comes up with recommendations.

"The strategic review will encompass a careful evaluation of the company's business plan, development strategy, market valuation and capital structure and will consider various alternatives for the company," said Ogilvie.

On Dec 12, 2013, the company reported a net loss of $3.9 million, or six cents per share, in its second quarter, compared to a loss of $1.8 million, or three cents a share, in the same period the previous year.

The results come a week after Kirkland Lake Gold said it planned to reduce spending in the current fiscal year ending April 30, 2014 by $2.1 million to bring total annualized savings to about $5 million.

The company said this would mean hiring freeze and the termination of some staff employment contracts along with a reduction in some drilling activity.

Kirkland Lake Gold also announced Monday that Brian Hinchcliffe has resigned as deputy chairman and as a member of the board, but will work on the strategic review as a consultant.

News from © The Canadian Press, 2014
The Canadian Press

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