Kirkland Lake Gold Upping Stake In Novo Resources
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Kirkland Lake Gold Ltd. (TSX: KL; NYSE:KL) says it has agreed to up its investment in Novo Resources Corp. Kirkland Lake says it will acquire 14 million units for C$4 each for a total cost of C$56 million under a private placement financing. Each unit consists of one common share and one common share purchase warrant. Upon closing, Kirkland Lake is expected to own 18.2% of Novo’s outstanding common shares and will hold approximately 25.5% on a partially diluted basis, assuming the exercise of the warrants, Kirkland Lake says. “Our investment in Novo is an important part of our strategy to grow and enhance the value of our Australian franchise, which currently includes large land positions in Victoria and the Northern Territory, and production from our high-grade Fosterville Gold Mine,” says Tony Makuch, president and chief executive officer of Kirkland Lake Gold. “Investing in Novo will provide our company with exposure to highly prospective exploration targets in the Pilbara Region of Western Australia, including the Karratha gold project, where recent exploration results have been very encouraging and suggest that the property may be host to a large gold system with significant potential for profitable, long-life production.”