|By Marketwired .||
|January 6, 2014 02:00 AM EST||
TORONTO, ONTARIO -- (Marketwired) -- 01/06/14 -- Kirkland Lake Gold Inc. ("Kirkland Lake Gold" or the "Company") (TSX: KGI)(AIM: KGI), an operating and exploration gold mining company, today announced that, in parallel with the mine plan optimisation programme announced on December 5, 2013, its board of directors (the "Board") has initiated a strategic review process to explore alternatives for the enhancement of shareholder value.
Chief Executive Officer George Ogilvie commented "While we continue to work on our plan to improve the Company's margins, the Board has approved a process to review and evaluate potential alternatives that may further maximize value for our shareholders."
Mr. Ogilvie added, "The strategic review will encompass a careful evaluation of the Company's business plan, development strategy, market valuation and capital structure and will consider various alternatives for the Company, including the potential sale of the Company's shares or assets, and any other options identified by executive management with the fundamental objective of achieving the best value for the Company's shareholders."
The Board has appointed a Special Committee comprised solely of independent directors to review and evaluate proposals considered as part of the strategic review process and to assess whether any such proposal may be more desirable than the continued operation of the Company on a stand-alone basis, and to make recommendations to the Board thereon. The Special Committee is chaired by Dawn Whittaker and is comprised of Ms. Whittaker, Brian Bayley and Pamela Klessig.
National Bank Financial ("NBF") and Stikeman Elliott LLP have been retained to advise the Company during this process.
There can be no assurance that the Company's efforts will be successful or that this process will result in any transaction. The Company does not currently intend to disclose further developments with respect to this process unless and until the Board reviews and approves the outcome of this review together with recommendations. The Company's mine plan optimisation programme will be unaffected by this review process.
The Company also announces that Brian Hinchcliffe has resigned as Deputy Chairman and as a member of the Board with immediate effect. Mr. Hinchcliffe has, however, agreed to support the strategic review process in a consultancy capacity.
Mr. Harry Dobson, Chairman of the Board, commented "Brian has played a valuable role for the last ten years as Chief Executive Officer and a Board member. He and I founded the Company together, and Brian was instrumental in the Company's transition from explorer to producer, including capital raising efforts. On behalf of the Company and the Board of Directors, I would like to thank Brian for his significant contributions to the Company and look forward to using his expertise on a consultancy basis during this strategic review process."
About the Company
Kirkland Lake Gold's corporate goal is to create a self sustaining and long lived intermediate gold mining company based in the historic Kirkland Lake Gold Camp. The Company plans to do this by increasing production capacity to 2,200 tons of ore per day in several stages, and by decreasing production costs by realizing the economies of scale associated with that higher production capacity. At the same time, the Company is committed to maintaining a significant exploration program aimed at developing and maintaining a property wide reserve and resource base sufficient to sustain a mine life of more than ten years for as long as practicable.
Over the last several years the Company has invested significant capital to improve the infrastructure of the business including upgrading the production hoist, skips, mill, underground mobile equipment and capital development.
From initial discovery to present day there have been over 24 million ounces of gold mined from the Kirkland Lake camp while the current reserve and resource provides for potentially 10 years of mining with significant exploration upside.
Cautionary Note Regarding Forward-Looking Statements
This Press Release contains statements which constitute "forward-looking statements", including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.
These factors include the outcome of the strategic review process the Board has implemented, the Company's expectations in connection with the projects and exploration programs being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating gold prices, currency exchange rates (such as the Canadian dollar versus the United States Dollar), possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate mineral resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life,, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2013 and the Company's Management's Discussion and Analysis for the interim period ended October 31, 2013 filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.
Kirkland Lake Gold Inc.
George Ogilvie, P.Eng
+1 709 532 5716
+1 705 568 6444 (FAX)
Kirkland Lake Gold Inc.
Director of Investor Relations
+1 705 568 6444 (FAX)
NOMAD: Panmure Gordon (UK) Limited
Callum Stewart / Adam James
+44 (0) 20 7886 2500