Business
New Found Gold Announces Acquisition of Securities of Kirkland Lake Discoveries
VANCOUVER, British Columbia / May 25, 2023 / Business Wire / New Found Gold Corp. (“New Found”) reports that on May 25, 2023 (the “Closing Date”), it acquired c
About this update from New Found Gold Corp
[{"type":"text","content":"VANCOUVER, British Columbia / May 25, 2023 / Business Wire / New Found Gold Corp. (“New Found”) reports that on May 25, 2023 (the “Closing Date”), it acquired control of 28,612,500 common shares (each, a “Kirkland Share”) in the capital of Kirkland Lake Discoveries Corp. (“Kirkland”) as consideration pursuant to a property purchase agreement dated February 16, 2023, as amended May 8, 2023, between New Found and Kirkland. (the “Agreement”) New Found entered into the Agreement with Kirkland on February 16, 2023, as amended on May 8, 2023, pursuant to which New Found has transferred to Kirkland 100% of its interests in the Lucky Strike property (the “Property”), excluding a 1% net smelter royalty on the production from the Property granted by Kirkland to New Found. In consideration for the Property, Kirkland issued 28,612,500 Kirkland Shares to New Found. The Kirkland Shares issued to New Found have an aggregate deemed value of C$5,722,500, or C$0.20 per Kirkland Share. As a result, New Found owns 28,612,500 Kirkland Shares (as disclosed by New Found in its early warning report dated May 25, 2023). Prior to the issuance of the Kirkland Shares, New Found did not own or control any Kirkland Shares. Immediately following the issuance of the Kirkland Shares, New Found, owns and controls a total of 28,612,500 Kirkland Shares, representing approximately 49.0% of the issued and outstanding Kirkland Shares. The Kirkland Shares were acquired for investment purposes. In connection with the transaction, Denis Laviolette, President and director of New Found, was elected as director of Kirkland effective on Closing Date and New Found may nominate two additional directors at a later date. Under the terms of the Agreement, New Found agreed to use commercially reasonable efforts to distribute all the Kirkland Shares that it holds to New Found’s shareholders, pro rata, within one year following the Closing Date. In addition, New Found agreed that, during this one year period, it will not transfer any Kirkland Shares except in connection with such share distribution. The Kirkland Shares are traded on the TSX Venture Exchange. Kirkland’s head office is located at 25 Adelaide Street East, Suite 1400, Toronto, Ontario, M5C 3A1. This news release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and In...