KL to jointly evaluate regional exploration opportunities around the former’s Timmins properties and Kirkland Lake Gold’s Ontario, Canada-based Holt Complex.
Under terms of the Agreement, Newmont will pay Kirkland Lake Gold US$75 million to acquire an option (the “Option”) on certain mining and mineral rights related to the Company’s Holt Mine property. The Agreement also includes a commitment by the two companies to work together to identify additional regional exploration opportunities around their respective land positions in the region where they may be able to cooperate in the future to advance projects and create value for both companies. Under terms of the Agreement, the Option may be terminated by the Company upon the assumption of certain liabilities related to the Holt Mine property. Kirkland Lake Gold will act as manager of Strategic Alliance activities. Ownership of all infrastructure on the Holt Mine property, including the Holt Mill, is retained by Kirkland Lake Gold, and the Option does not involve the other Holt Complex assets, including the Holloway and Taylor mines.
