On Aug. 22, the company announced it had purchased additional shares in the exploration company, bringing its ownership to 11.32 per cent, up from 10.17 per cent prior to the acquisition.
The company paid CAD$5 million for two million shares of Bonterra, at $2.50 per unit. Each unit is comprised of one common share and a half-share purchase warrant. Each full warrant entitles the company to acquire one share at a price of $3.10 until Aug. 20, 2021.
Based in Val d’Or, Que., Bonterra owns the Gladiator, Barry and Moroy deposits, along with the Urban-Barry Mill, the only permitted gold mill in the area.
In a news release, Kirkland Lake Gold said it had purchased the units for investment purposes.
“Kirkland Lake Gold has a long-term view of the investment and may acquire additional securities either on the open market or through private investments, or sell the securities either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors,” the company said.
In Northern Ontario, Kirkland lake Gold operates the Macassa Mine in Kirkland Lake and the Holt and Taylor mines in Matheson, in addition to the Fosterville Mine in Australia.
In 2019, the company is projecting to produce between 950,000 and one million ounces of gold.