- Kirkland Lake Gold (KL) is partially divesting its holdings in a pair of notable Canadian mining companies
- Kirkland Lake sold out its stake in Osisko Mining, offloading 32.6 million shares at an average per share price of C$4.45 for a cash total of $145.192 million
- The company also offloaded a portion of its holding in Novo Resources in two tranches, for a cash total of $2.579 million
- Kirkland Lake has purchased a further 863,600 Kirkland Lake shares through a normal course issuer bid
- Kirkland Lake Gold (KL) is up 2.5 per cent and is trading at $66.09 per share at 11:10 am EDT
Kirkland Lake Gold (KL) is partially divesting its holdings in a pair of notable Canadian mining companies.
Kirkland is disposing of just over 32.6 million Osisko Mining shares and 748,000 Novo Resources shares.
The company sold out of its Osisko shareholdings on August 10. The disposed shares represent 9.57 per cent of the total issued and outstanding stock of the intermediate miner.
The average per share price of the Osisko shares was C$4.45 per share and the sale netted Kirkland Lake just over C$145 million.
The sale of the Novo share took place between August 7 and August 12 at an average price of $3.52 per share for a total of $1.89 million. The company previously sold out 210,000 shares of Novo in June at an average price of $3.28 per share for a total of $689,024.
However, even after the divestment finalised, Kirkland still retains a 15 per cent stake in Novo’s share float.
The company also purchased and cancelled 863,500 Kirkland Lake shares under a normal course issuer bid. This year to date the company has seen the company purchase and cancel around 11.9 million of its own shares, which cost $512.81 million in total.
Tony Makuch, President and CEO of Kirkland Lake Gold said the sale of the Osisko and Novo shares would enhance the company’s financial strength, allowing it to further invest in its mining assets.
“There remains significant value creation potential at all three of these assets and unlocking that value is our overriding priority.
“Also important to us is rewarding shareholders which, in addition to share price performance, also involves buying back stock and copying dividends,” he said.
Kirkland Lake Gold (KL) is up 2.5 per cent and is trading at $66.09 per share at 11:10 pm EDT.