Kirkland Lake Gold announced June 12 that it intends to raise $7 million through private placement flow-through financing.
The company will issue 1,795,000 flow-through common shares at a price of $3.90 per share on a bought deal basis, led by National Bank Financial.
The offering is anticipated to close on or about July 3.
Kirkland Lake intends to use the net proceeds to advance its surface exploration program.
In April 28, the company produced a first-time resource calculation of near surface ounces on its ABM and Amalgamated Trend.
Current resources include an indicated resource of 310,000 tons at grade of 0.34 opt (104,000 ounces) and an inferred resource of 131,000 tons at a grade of 0.36 opt (48,000 ounces).
Proceeds will be used for infill and exploration drilling. The company said it’s focused on advancement of this area as it may represent a new mining front.