Assets of the two Canadian firms in Canada’s Abitibi Greenstone Belt are in proximity to Kirkland Lake Gold’s Macassa mine
Kirkland Lake Gold (KL Gold) has signed two separate deals to acquire a stake of 9.9% each in Orefinders Resources and Mistango River Resources.
Both Orefinders and Mistango River are exploration and development companies engaged in the Abitibi Greenstone Belt in Canada.
Orefinders will issue 24.4 million shares to Kirkland Lake Gold for an amount of CAD2.44m ($1.95m).
In the other deal, Kirkland Lake Gold will acquire 14.3 million shares in Mistango River for a total of CAD2.14m ($1.71m).
The two deals are subject to regulatory approvals and other conditions.
Orefinders CEO and Mistango chairman Stephen Stewart said: “Orefinders and Mistango are excited to jointly announce this unique partnership and equity investment with a top-tier operator like KL Gold.
“We see this as a testament to our assets’ quality and our specific focus on the Kirkland Lake district of Ontario.
“With Kirkland Lake Gold’s financial and technical support, we are excited to realize our portfolio’s full potential while also seeking new acquisition opportunities.”
Kirkland Lake Gold has also been given an option by Orefinders to acquire a stake of up to 75% in the latter’s Mirado, McGarry and Knight projects.
In return, Kirkland Lake Gold has to spend CAD60m ($48m) towards the exploration and development on the projects.
Orefinders has a stake of 18% in Mistango River, which owns the Kirkland West and the Omega gold projects. The Kirkland West project is located near Kirkland Lake Gold’s Macassa Gold Mine.
On the other hand, the Omega Project is an advanced-stage project with nearly 600,000 ounces in place. It is located 25km east of the Macassa mine.
Mistango River has also given Kirkland Lake Gold an option to acquire up to a stake of 75% in its Kirkland West and Omega projects. This will be in return of an amount of CAD60m ($48m) spent on the two gold projects by Kirkland Lake Gold.