Kirkland Lake greenshoe exercised, lifts convertibles to C$69 million

By Devika Patel

Knoxville, Tenn., Nov. 7 - Underwriters for Kirkland Lake Gold Inc.'s offering of 7.5% five-year convertible debentures exercised their over-allotment option in full for C$9 million more of the convertibles, increasing the size of the issue to C$69 million, the company said in a press release.

As previously reported, the company sold the notes at par of C$1,000 on Oct. 16 in a Rule 144A offering via co-lead underwriters Dundee Securities Ltd. and CIBC.

The convertibles have an initial conversion premium of 30.5% and an initial C$13.70 conversion price, which equals a conversion ratio of 72.9927.

Proceeds will be used to fund the production expansion program at the company's mining operations in Kirkland Lake, Ont., to complete remaining payments due to Queenston Mining Inc. related to the acquisition of various joint venture projects and for general corporate purposes, including working capital.

Kirkland is a gold exploration company based in Kirkland Lake, Ont.

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