Kirkland Lake Discoveries closes $20M private placement

Kirkland Lake Discoveries Corp. (TSXV: KLDC) (OTCQB: KLKLF) has closed an upsized brokered private placement raising approximately $20.2 million in gross proceeds, according to a company statement.

The offering was co-led by Canaccord Genuity Corp. and CFT Financial Corporation and included a lead order from resource investor Eric Sprott. The company issued three classes of securities: 29,457,000 flow-through common shares at $0.40 each, raising $11.8 million; 5,714,000 special flow-through common shares at $0.483 each, raising approximately $2.8 million; and 16,066,510 common shares at $0.35 each, raising approximately $5.6 million.

Proceeds from the flow-through shares are designated for eligible Canadian exploration expenses qualifying as flow-through mining expenditures under the Income Tax Act (Canada), to be incurred by December 31, 2027. The company intends to renounce those expenditures to subscribers with an effective date no later than December 31, 2026. Proceeds from the common shares will be used for general corporate purposes.

The agents received a cash commission and 2,121,460 broker warrants, each exercisable at $0.35 per share for 24 months following closing.

Stefan Sklepowicz, Chief Executive Officer, said the company views Sprott's participation "as a strong endorsement of our team and the potential of our Kirkland Lake portfolio."

All securities issued are subject to a statutory hold period expiring February 9, 2027. The offering remains subject to final approval from the TSX Venture Exchange.

Kirkland Lake Discoveries holds a 420 km² exploration portfolio in the Kirkland Lake region of Ontario's Abitibi Greenstone Belt.

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