Detour Gold shareholders have approved the takeover of the northeastern Ontario miner by Kirkland Lake Gold.
The Toronto open-pit gold producer announced shareholders voted 86 per cent in favour of the acquisition at a special shareholders meeting.
The deal is expected to close on Jan. 31, pending the usual regulatory and court approvals.
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Late last November, Kirkland Lake Gold announced it was acquiring its northeastern Ontario neighbour for $4.9 billion.
Detour Gold’s main asset is its open-pit Detour Lake operation, north of Cochrane. Kirkland Lake Gold considers it a “cornerstone asset” that’s on par with its own Macassa Mine complex in Kirkland Lake and the Fosterville Mine in Australia.
“Today’s vote highlights the value created through our combination with Kirkland Lake Gold and supports our view that together, Detour Gold and Kirkland Lake Gold will be a leading, global gold mining corporation with an enhanced global portfolio and strong financial position,” said Detour Gold president Mick McMullen in a Jan.28 news release.
“Following closing, our team looks forward to collaborating with the Kirkland Lake Gold team to optimize and expand Detour Lake and realize the value this combination brings to all of our stakeholders.”
Detour board chair Patrice Merrin was pleased with the strong shareholder endorsement.
“It is clear that our shareholders recognize the comprehensive and rigorous nature of our strategic review and understand the upside this combination brings, above and beyond Detour Gold’s impressive growth under Mick’s leadership, during which time our share price nearly doubled.
“After assessing the opportunities available and speaking with multiple potential partners, the board believes this transaction provides the best value to Detour Gold’s shareholders, valuing the improvements that have been made at the mine while also benefiting from Kirkland Lake Gold’s high-quality, low cost portfolio.”
