Canadian Immigration Focus on Economy: Two Major Canadian Mining Companies Announce Merger on November 17
As a long-established destination for investment immigration, Canada has consistently been favored by numerous investors. Nowadays, after obtaining immigration status, many investors focus their attention on the Canadian economic market; in other words, immigrating to Canada is intended to facilitate their own business development. Recently, the Canadian gold mining company Kirkland Lake Gold Inc. announced on Tuesday (November 17) that it has reached an acquisition agreement with St Andrew Goldfields Ltd. This makes Kirkland Lake a multi-asset mid-tier gold producer headquartered in Ontario, Canada. Consequently, the gold market has attracted the attention of many Canadian immigrants.
It is reported that the all-share transaction is valued at 178 million Canadian dollars. The acquired gold mines are expected to produce 260,000 to 310,000 ounces of gold in 2016, with estimated costs of around 600 to 690 US dollars per ounce.
The transaction involves St Andrew shareholders receiving Kirkland Lake company shares at a certain ratio. Analysts have deemed this acquisition highly beneficial to Kirkland Lake, which led to a rise in the company's stock price on the Toronto Stock Exchange on Tuesday.
Kirkland Lake currently owns four gold mines in Ontario, as well as two processing plants. Analysts state that this acquisition plan will benefit both companies, allowing for better utilization of at least two previously under-developed gold mines.
Kirkland Lake President and CEO George Ogilvie stated, "This acquisition adds high-quality assets to our company and will immediately boost our production. It is very helpful for the company's asset value and cash flow."
St Andrew President and CEO Duncan Middlemiss stated that his company welcomes all opportunities to collaborate with other advanced producers. He expressed that it is an honor to merge with Kirkland Lake and form a comprehensive gold mining enterprise based in the Canadian region.
It is reported that shareholders of both parties have approved the acquisition, with further meetings scheduled for January, while some reviews are still in progress.