KL Gold and Newmont form $75 million "strategic alliance"

BREAKING NEWS: By Kevin Vincent. Two mining powerhouses are joining forces to explore the prolific Timmins and Kirkland Lake regions. Kirkland Lake Gold Ltd. announced after the markets closed Monday that the company and its wholly-owned, indirectly held subsidiary, St Andrew Goldfields Ltd. has entered into a strategic alliance agreement with Newmont Canada FN Holdings ULC with respect to exploration and development opportunities around the company’s Holt Complex and Newmont’s properties in Timmins, Ontario.

Under terms of the Agreement, Newmont will pay Kirkland Lake Gold US$75 million to acquire an option on certain mining and mineral rights related to the Company’s Holt Mine property.   The Agreement also includes a commitment by the two companies to work together to identify additional regional exploration opportunities around their respective land positions in the region where they may be able to cooperate in the future to advance projects and create value for both companies. Under terms of the Agreement, the Option may be terminated by the Company upon the assumption of certain liabilities related to the Holt Mine property. Kirkland Lake Gold will act as manager of Strategic Alliance activities. Ownership of all infrastructure on the Holt Mine property, including the Holt Mill, is retained by Kirkland Lake Gold, and the Option does not involve the other Holt Complex assets, including the Holloway and Taylor mines.

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