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BRIEF-Kirkland Lake Gold and Newmarket Gold to combine to create a new mid-tier gold company

Published 2016-09-29, 08:16 a/m
© Reuters.  BRIEF-Kirkland Lake Gold and Newmarket Gold to combine to create a new mid-tier gold company
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Sept 29 (Reuters) - Kirkland Lake Gold Inc KLG.TO

* Kirkland Lake Gold and Newmarket Gold to combine to create a new mid-tier gold company

* Existing Kirkland Lake Gold and Newmarket shareholders will own about 57% and 43%, respectively of combined co on fully-diluted in money basis

* Implied equity value of deal is equal to C$1.01 billion

* Shareholders of Newmarket will receive 0.475 of a post consolidation share for every 1 pre-consolidation share of Newmarket

* Under terms of deal, shareholders of Newmarket to receive 0.475 of post consolidation earnings per share for every 1 pre-consolidation earnings per share of Newmarket

* Combined company will have a market capitalization of approximately C$2.4 billion and produce over 500 koz of gold annually

* Exchange ratio implies consideration of C$5.28 per newmarket common share Source text for Eikon: ID:nCCN1B6lBT Further company coverage: KLG.TO

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