Kirkland Lake Gold Discontinues Automatic Share Purchase Program
Kirkland Lake Gold (TSX: KL) appears to be in capital preservation mode following the merger announced with Agnico Eagle Mines (TSX: AEM) yesterday. The firm this morning announced that it will be discontinuing its automatic share purchase plan.
Referred to as the ASPP, the program was used to enable the company to continue to repurchase shares on the open market during deemed blackout periods, when the firms normal course issuer bid was not permitted to operate. The current normal course issuer bid, also referred to as a share buyback program, remains ongoing however.
Launched just months ago on June 21, the ASPP is responsible for the purchase of a total of just under 3.4 million share of the company on the open market. The program was slated to purchase up to 5.0 million shares through to June 8, 2022, meaning that the program was operating aggressively, having already fulfilled over half of its total allocation.
The share buyback program meanwhile is eligible to purchase up to 26.7 million common shares of the issuer through to June 8, 2022. No additional shares that were not acquired under the ASPP have been purchased under the normal course issuer bid as of yet.
Kirkland Lake Gold last traded at $51.38 on the TSX.
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