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KL Gold shows interest in Melkior

May 20, 2020

Melkior Resources Inc. has inked a strategic partnership with Kirkland Lake Gold just days after the company released an impressive set of drill results in West Timmins. KL Gold is putting $1 million into Melkior through a non-brokered private placement. 

"We are extremely proud to announce this landmark equity investment and potential joint-venture agreement with one of the world's most respected gold mining companies. We believe this may provide our shareholders with the upside of discovery with limited share dilution to advance the Property. Kirkland Lake Gold CEO Tony Makuch was President and CEO of Lake Shore Gold, from 2008 until its acquisition by Tahoe Resources in 2016. The operation was later acquired again by Pan American Silver, which shares a 9km border with our Carscallen gold project," said Jonathon Deluce, Chief Executive Officer of Melkior.

Mr. Mak"uch and his technical team have a comprehensive understanding of the geological setting within the Timmins gold camp, which we felt as a board made this the perfect fit. We will continue to focus on advancing our other assets while providing updates as they come available at the Carscallen Project. We want to thank our long-standing shareholders as we look forward to welcoming Kirkland Lake Gold as a strategic partner upon completion of the financing,” added Deluce. 

Each unit will be comprised of one common share of Melkior and one common share purchase warrant entitling Kirkland to acquire a Melkior share for $1.20 per share for a period of two years from the closing of the financing.

The financing remains subject to receipt of all necessary regulatory approvals, including conditional approval of the TSXV.

In addition, the parties have entered int a non-binding term sheet pursuant to which Kirkland may acquire an option on the Company’s Carscallen Property, located 25 kms west of Timmins (the “Property”). Upon entering into definitive agreements, Kirkland would have the right to earn up to a 50% interest in the Property over a five year period upon incurring certain exploration expenditures. Upon completion of the earn in and formation of a joint venture, Kirkland would retain the right to acquire an additional 25% interest in the Property over a subsequent five year period upon incurring additional exploration expenditures. Entering into the option and joint venture agreement remains subject to the negotiation and execution of definitive agreements and the receipt of all required board and regulatory approvals.


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