The operational and management shakeup continues at Kirkland Lake Gold.
The company has launched a strategic review of its flagship northeastern Ontario operation and even the sale of assets are up for discussion.
The review comes on the heels of the Toronto-based mining company’s plan to cut costs with staff layoffs, hiring freezes and reducing exploration activity in order to save $5 million a year.
"While we continue to work on
our plan to improve the company's margins,” said CEO George
Ogilivie in a Jan. 6 statement, “the board has approved a process
to review and evaluate potential alternatives that may further
maximize value for our shareholders."
The company’s business plan, development strategy, market valuation and capital structure are all up for review. All options will be considered including selling shares and assets, the company said.
A special committee has been struck to review and evaluate proposals and assess whether the company should continue on a stand-alone basis.
Former CEO Brian Hinchcliffe has also resigned as deputy chairman and a board member, but he’ll stay on as a consultant.
Chairman Harry Dobson said Hinchcliffe played a “valuable role” as CEO over the last decade.
“He and I founded the Company together, and Brian was instrumental in the company's transition from explorer to producer, including capital raising efforts.”