Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Kirkland Lake Gold Ltd. (KL) has completed its purchase of Detour Gold (DGC)
  • Kirkland Lake Gold Ltd. has acquired all outstanding and issued shares if the Detour Gold Corporation
  • The implied value of the purchase is C$4.9 billion
  • Kirkland Lake Gold  Ltd. owns and operates The Macassa Mine located in Northern Ontario, Canada, and the Fosterville Mine located in the State of Victoria, Australia
  • Detour Gold owns and operates the Detour Gold mine in Ontario, Canada.
  • Detour Gold Corporation (DGC) was up 4.72 per cent, with shares currently trading at C$23.93
  • Kirkland Gold Ltd. (KL) is up 3.96 per cent, with shares currently trading at C$55.13

Kirkland Lake Gold Ltd. (KL) has finalised its purchase of the Canadian gold mining company Detour Gold (DGC). 

Initially announced last year, Kirkland Lake Gold has now bought all issued and outstanding shares in Detour Gold. All previously issued shares have be traded for an equivalent 0.4343 common share in Kirkland Lake Gold Ltd. 

This purchase is valued at just under C$5 billion.

As a result of the acquisition Detour Gold Corporation has now become a wholly owned subsidiary of Kirkland Lake Gold.

Detour Gold owns and operates a gold mine in north-eastern Onatrio. The company acquired The Detour Lake mine in 2007 and began gold production in 2013. 

Detour Gold had a strong year in 2019 before announcing the buy-out in late November. From Jan-Dec of 2019 the company’s (DGC) share price almost doubled.

Kirkland Lake Gold Ltd. is an Australian-Canadian gold mining company. It owns the Macassa Mine located in Northern Ontario and the Fosterville Mine located in the State of Victoria. 

Kirkland Lake produced just under 1 million ounces of gold in 2019 and is targeting another million in 2020.

Comparably, Detour Gold’s Ontario site produced 0.6 million ounces, making this a very significant acquisition by Kirkland Lake Gold Ltd. 

The current spot price of gold is C$2,097.74 an ounce according The World Gold Council. 

Detour Gold Corporation (DGC) and Kirkland Gold Ltd. (KL) both opened strong today on the TSX.

Detour Gold Corporation (DGC) was up 4.72 per cent, with shares currently trading at C$23.93.

Kirkland Gold Ltd. (KL) was up 3.96 per cent, with shares currently trading at C$55.13.

More From The Market Herald
Newrange Gold - CEO, Robert Archer.

" Newrange Gold (TSXV:NRG) outlines winter drilling program for Red Lake projects

Newrange (NRG) has provided details on the upcoming drill programs on its 100 per cent owned North Birch and Argosy Gold Mine Projects.

" CAVU (CSE:CAVU) closes oversubscribed $3.5M private placement

CAVU Mining Corp. (CAVU) has closed its oversubscribed private placement for gross proceeds of $3.5 million.

" Element 29 (TSXV:ECU) receives DTC eligibility

Common shares of Element 29 Resources (ECU) are now eligible for electronic clearing and settlement through the Depository Trust Company.

" Ivanhoe Mines (TSX:IVN) announces construction updates for Kamoa Copper’s Phase 2 concentrator plant

Ivanhoe Mines (IVN) has released an update on the construction of a Phase 2 concentrator plant at Kamoa-Kakula.