Kirkland to buy Newmarket Gold for Cdn$1 billion deal

Canada’s Kirkland Lake Gold (TSX:KLG) is buying fellow bullion miner Newmarket Gold (TSX:NMI) in an all-stock deal worth about Cdn$1 billion ($764 million), which will create what the firms said will be a low-cost producer with operations in Canada and Australia.

Toronto-based Kirkland said its shareholders will own about 57% of the merged company, which will keep Kirkland Lake Gold as its name, with Vancouver’s Newmarket holding the rest.

Kirkland Chief Executive Officer Tony Makuch will lead the company and sit on its board, while Kirkland Chairman Eric Sprott will have the same title in the combined company, the companies said in the statement.

The combined gold miner will have a market capitalization of about Cdn$2.4 billion and produce more than 500,000 ounces of the yellow metal a year, with all-in sustaining costs of less than $1,015 an ounce, the firms said.

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