Kirkland Lake arranges $7-million private placement

Executive Summary

• Kirkland Lake Discoveries Corp. announced a non‑brokered private placement to raise up to C$7 million in gross proceeds.
• The offering consists of flow‑through shares at C$0.30 each and units at C$0.25 each (each unit = 1 common share + ½ warrant, full warrant exercisable at C$0.40 for 36 months).
• Lead orders of C$6 million have been secured from investors including Eric Sprott, Rob McEwen and Crescat Capital; proceeds will fund exploration on the company’s projects and general working capital.

Key Details

• Securities Offered
• Flow‑through shares: C$0.30 per share.
• Units: C$0.25 per unit (1 common share + ½ warrant). Full warrant exercisable at C$0.40 for 36 months.
• Target Gross Proceeds: Up to C$7 million; C$6 million already pledged via lead orders.
• Use of Proceeds
• Net proceeds from units → finance exploration activities on KL East and KL West projects, plus general working capital.
• Gross proceeds from flow‑through shares → incur Canadian exploration expenses qualifying as flow‑through mining expenditures under the Income Tax Act.
• Closing Timeline: Expected within 21 days of announcement, subject to customary conditions and TSX‑V approval.
• Statutory Hold Period: All securities subject to a hold period of four months and one day from closing.
• Related Party Participation
• Insiders may participate; transaction qualifies for MI 61‑101 exemptions because insider purchase price/value ≤ 25 % of market cap.
• No material change report will be filed ≥21 days before closing, as deemed reasonable by the board.
• Board Approval: Offering unanimously approved by the board of directors.
• Finder’s Fee: Company may pay a finder’s fee in accordance with TSX‑V policies and applicable securities laws.

Notable Quotes

(No direct quotes were provided in the release.)