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Kirkland Lake Discoveries Announces Closing of $7.8 Million Private Placement Offering of Subscription Receipts and Acquisition of the Lucky Strike Property
Toronto, Ontario--(Newsfile Corp. - May 25, 2023) - Kirkland Lake Discoveries Corp.  ( TSXV...
About this update from Kirkland Lake Discoveries Corp.
[{"type":"text","content":"Kirkland Lake Discoveries Announces Closing of $7.8 Million Private Placement Offering of Subscription Receipts and Acquisition of the Lucky Strike PropertyToronto, Ontario--(Newsfile Corp. - May 25, 2023) - Kirkland Lake Discoveries Corp. (TSXV: KLDC) (formerly Warrior Gold Inc., \"Kirkland Lake Discoveries\" or the \"Company\"), is pleased to announce that the Company has completed its acquisition of the Lucky Strike property (the \"Lucky Strike Property\") and related private placement offering of Subscription Receipts (as defined below).Acquisition of Lucky Strike PropertyAs previously announced in its news release dated February 22, 2023, the Company entered into an asset purchase agreement with New Found Gold Corp. (\"NFG\") dated February 16, 2023, as amended May 8, 2023 (the \"Purchase Agreement\"), pursuant to which the Company has now acquired from NFG all of the properties comprising the Lucky Strike Property located in the Kirkland Lake gold camp in Ontario, Canada (the \"Transaction\"). Pursuant to the Purchase Agreement, the Company acquired the Lucky Strike Property by issuing to NFG 28,612,500 common shares in the capital of the Company, and granting to NFG a 1.0% net smelter return royalty on the Lucky Strike Property pursuant to a royalty agreement. The common shares issued pursuant to Purchase Agreement are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. In addition, under the terms of the Purchase Agreement, NFG agreed to use commercially reasonable efforts to distribute all the common shares of the Company that it holds to its shareholders, pro rata, within one year following the completion of the Transaction.The Company's board of directors was reconstituted in conjunction with the completion of the Transaction and now consists of four directors: Denis Laviolette, Danièle Spethmann, Gary Nassif, and Stephen Burleton. Two additional directors may be nominated by NFG later.Consolidated Land PackageThe Lucky Strike Property, located immediately east of the Company's neighboring land package in Kirkland Lake, Ontario, consists of 653 unpatented mining claims covering approximately 11,367 hectares (114 km2). The consolidated properties of the Company now form the largest land package in the Kirkland Lake Gold C...