Kirkland Lake starts normal course issuer bid for 6%, 7.5% convertibles

By Toni Weeks

San Luis Obispo, Calif., April 1 – Kirkland Lake Gold Inc. said it received approval from the Toronto Stock Exchange for a normal course issuer bid to purchase up to C$5.75 million of its outstanding C$57.5 million of 6% convertible unsecured subordinated debentures and up to C$6.9 million of its outstanding C$69 million of 7.5% convertible unsecured subordinated debentures.

The amounts represent 10% of the public float issued and outstanding of each series of notes as of March 30.

The bid will run from April 3 through April 2, 2016. The company will pay the market price for any securities purchased through the facilities of the TSX.

Under the normal course issuer bid, the maximum number of securities that the company may purchase on a daily basis, other than block purchase exemptions, was C$9,748 of the 6% debentures and C$17,333 of the 7.5% debentures, the release noted.

The actual number of debentures purchased for cancellation and the timing of such purchases will be determined by the company.

According to the press release, by repurchasing the debentures, the company will reduce interest payments, resulting in cash savings for the company in the long term, and will also minimize potential future dilution of the shares.

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

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