- Kirkland Lake Gold (KL) has formed a strategic alliance with Newmont Canada FN Holdings to advance both companies’ claims in Ontario, Canada
- An international gold royalty company, Newmont Canada FN Holdings is a branch of Newmont, the world’s largest gold mining corporation
- According to the agreement, Newmont will pay Kirkland approximately C$98.76 million to potentially option certain mining and mineral rights on the Holt Mine property
- Further, through the alliance the two companies will now looking across their combined land holdings in the area to develop future collaborative projects
- Kirkland Lake Gold (KL) is up 1.64 per cent and is trading at $71.41 per share
Kirkland Lake Gold (KL) has formed a strategic alliance with Newmont Canada FN Holdings to advance both companies’ mining claims in Ontario, Canada.
An international gold royalty company, Newmont Canada FN Holdings is a branch of Newmont, the world’s largest gold mining corporation, which holds extensive claims across the Ontario region.
The comapanies formed the alliance, through Kirkland’s indirect subsidiary St Andrew Goldfields, to advance explorations at Kirkland’s Holt Complex and Newmont’s properties in Timmins, Ontario.
This news is somewhat surprising, as Kirkland recently designated the complex non-core and subsequently extended the ongoing operational suspension at the site indefinitely.
According to the agreement, Newmont will pay Kirkland C$98.76 million to potentially option certain mining and mineral rights on the Holt Mine property.
It seems Kirkland is eager to extract value from the suspended site, while also focusing on its core mining assets, the Macassa and Detour Lake Mines in Northern Ontario, and the Fosterville Mine located in Australia.
Further, through the alliance to two companies will now looking across their combined land holdings in the area, looking for future collaborative projects.
During these collaborations, Kirkland will act as manager of operations and was quick to point out it is retaining ownership of all infrastructure on the Holt Complex.
However, Kirkland did state that the option could be terminated based on the assumption of the Holt Mine’s liabilities. Further the option does not include the other assets on the Holt Complex, such as the Holloway and Taylor mines, leaving the fate of these operations in limbo.
Kirkland Lake Gold (KL) is up 1.64 per cent and is trading at $71.41 per share at 1:50pm EDT.