Kirkland Lake Gold shareholders have until November 23 to vote
TORONTO - Kirkland Lake Gold Inc. ("Kirkland Lake Gold") (TSX:KLG) is pleased to announce Institutional Shareholder Services Inc. ("ISS") and Glass, Lewis & Co., LLC, the leading independent proxy advisory firms that provide voting recommendations to institutional investors, continue to recommend shareholders of Kirkland Lake Gold vote in favour of the proposed plan of arrangement with Newmarket Gold Inc. to merge the two companies ("Business Combination").
Their recommendation stands after new details were released of proposals by Gold Fields Limited ("Gold Fields") and Silver Standard Resources Inc. ("Silver Standard"), which were all non-binding, subject to due diligence, and determined to be financially inferior by the Kirkland Board.
Kirkland Lake Gold reminds shareholders that there is only one transaction before them, which is the business combination with Newmarket. Shareholders are required to vote their proxies before 10 a.m. (Toronto time) on Nov. 23, 2016.
In its alert to Kirkland Lake Gold shareholders for informational purposes only ISS noted that "the previously published vote recommendation remains unchanged."
Glass Lewis noted: "We updated the Kirkland Lake Gold Proxy Paper following the release of additional details regarding an alternative, unsolicited acquisition proposal for Kirkland, as it relates to Kirkland's proposed merger with Newmarket. Our voting recommendation remains unchanged, as we continue to recommend that shareholders vote FOR the proposed arrangement with Newmarket."
In its initial report, ISS recommended that both Kirkland Lake Gold and Newmarket shareholders vote FOR the respective resolutions relating to the plan of arrangement for a number of reasons.
One main reason is the fact that "the arrangement makes strategic sense" for both companies "as it will result in the creation of a larger, more diversified company with a portfolio of high-quality assets, while the Combined Company will have a stronger financial position and greater cash resources" than Kirkland Lake Gold or Newmarket alone.
Glass Lewis' original report recommended that both Kirkland Lake Gold and Newmarket shareholders vote FOR the respective resolutions relating to the plan of arrangement for a number of reasons, including the fact that the strategic and financial benefits offered in the proposed combination, as compared to other opportunities, offers the prospect of enhanced shareholder returns rather than the standalone scenario.
In connection with the Business Combination, shareholders of Kirkland Lake Gold will receive 2.1053 Newmarket shares (on a pre-consolidated basis) for each Kirkland Lake Gold share held which will be approximately one Newmarket share on a post-consolidation basis.
Pursuant to the consolidation, shareholders of Newmarket will receive 0.475 of a post-consolidation share for every one pre-consolidation share of Newmarket held.
Existing Kirkland Lake Gold and Newmarket shareholders will own approximately 57 per cent and 43 per cent of the combined company, respectively, on a fully-diluted in-the-money basis.
Management of both companies believes that the Business Combination will provide shareholders with significant benefits to each that would not be available if each company remained as a standalone entity.
Shareholders of Kirkland Lake Gold are encouraged to read the Joint Management Information Circular, a copy of which is available under their respective profiles on the SEDAR website (www.sedar.com).
Shareholders must vote their proxy before10 a.m. (Toronto time) on Nov. 23, 2016.
Kirkland Lake Gold shareholders with questions or who need help voting are encouraged to contact Kingsdale Shareholder Services at 1-877-659-1824 toll-free within North America, or 1-416-867-2272 (for collect calls outside North America), or e-mail at firstname.lastname@example.org.
About Kirkland Lake Gold
Kirkland Lake Gold is an intermediate gold producer with assets in the historic Kirkland Lake gold camp, and east of the Timmins gold camp along the Porcupine-Destor Fault Zone, both in northeastern Ontario.
Kirkland Lake Gold is currently targeting annual gold production of between 280,000 to 290,000 ounces from its cornerstone asset, the Macassa Mine Complex and the Holt Mine Complex which includes the Holt, Holloway and Taylor mines.
Kirkland Lake Gold is committed to building a sustainable mining company that is recognized as a safe and responsible gold producer with quality assets in safe mining jurisdictions.
The Toronto Stock Exchange has neither reviewed nor accepts responsibility for the adequacy or accuracy of this news release.
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