Kirkland Lake Gold has entered into a share sale agreement with the Stawell Gold Mines buyer Arete Capital Partners.
Arete will acquire all of the issued and outstanding common shares of Stawell Gold Mines.
But pursuant to the terms of the agreement Kirkland Lake Gold will receive US$6.25 million in cash consideration and retain a 2.5 per cent net smelter return (NSR) royalty on the mine.
Kirkland Lake Gold president and chief executive officer Tony Makuch said the transaction was consistent with the company’s long-term strategy to focus on low-cost, high-grade core assets while simultaneously providing Kirkland Lake Gold with continued exposure to the project through the NSR.
“We believe the management team at Arete is well positioned to optimise the operational potential of Stawell in a sustainable manner to create value,” he said.
“I would like to thank the entire team at Stawell for their dedication and commitment over the years along with the strong support received from the local Victorian government in Australia.”
Closing of the transaction is expected to occur on or before December 22, 2017, and is subject to certain customary closing conditions.