Kirkland Lake arranges $7-million private placement

Mr. Stefan Sklepowicz reports KIRKLAND LAKE DISCOVERIES CORP. ANNOUNCES $7M PRIVATE PLACEMENT WITH LEAD ORDERS OF $6M Kirkland Lake Discoveries Corp. proposes to complete a non-brokered private placement, pursuant to which it shall issue: (i) flow-through shares at a price of 30 cents per flow-through share; and (ii) units at a price of 25 cents per unit, in any combination, to raise aggregate gross proceeds of up to $7-million. Each unit will consist of one common share of the company and one-half of one common share purchase warrant, with each whole warrant exercisable to acquire one additional common share at an exercise price of 40 cents for a period of 36 months from the date of issuance thereof. The flow-through shares issued under the offering are intended to qualify as flow-through shares within the meaning of the Income Tax Act (Canada). The company has secured initial lead orders from new and existing investors, including Eric Sprott, Rob McEwen and Crescat Capital, for $6-million. The company intends to use the net proceeds raised from the issuance of the units to finance exploration activities on the company's projects and for general working capital purposes. The gross proceeds from the sale of the flow-through shares will be used to incur Canadian exploration expenses, which are intended to qualify as flow-through mining expenditures, as those terms are defined in the tax act. Closing of the offering remains subject to customary conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. All securities to be issued pursuant to the offering will be subject to a statutory hold period under applicable Canadian securities laws of four months and one day from the date of closing of the offering. The company may pay a finder's fee in connection with the offering to eligible finders in accordance with the policies of the TSX-V and applicable securities laws. Related party participation in the offering Certain insiders of the company expect to participate in the offering. The participation by insiders in the offering constitutes a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of the securities purchased by insiders nor the consideration for the securities paid by such insiders will exceed 25 per cent of the company's market capitalization. The company expects that the closing of the offering will occur within 21 days of this announcement and that it will not file a material change report in respect of the related party transaction at least 21 days before the closing. The company deems this circumstance reasonable in order to complete the offering in an expeditious manner. The offering has been unanimously approved by the company's board of directors. Further information regarding the interest in the offering of every related party and the effect that the offering will have on their percentage of securities of the company will be provided once finalized. About Kirkland Lake Discoveries Corp. Kirkland Lake Discoveries has assembled a 40,000-hectare exploration portfolio in the Kirkland Lake region of Ontario's Abitibi greenstone belt -- one of the most prolific mining districts in the world. The company's properties span key fault zones, geophysical anomalies and volcanic sedimentary contacts within the Blake River group -- a highly prospective assemblage known to host both gold and polymetallic VMS (volcanogenic massive sulphide) deposits. With multiple anomalous soil trends, historical showings and structural intersections now permitted for exploration, Kirkland Lake Discoveries is advancing a pipeline of drill-ready targets across its KL East and KL West project areas. The team combines strong technical experience with a focus on smart, efficient exploration designed to deliver results. We seek Safe Harbor.