Orefinders Resources Sees Kirkland Lake Gold Take 9.9% Stake In Company
Orefinders Resources Inc (TSXV: ORX) has seen Kirkland Lake Gold (TSX: KL) acquire a 9.9% stake in the company as part of a larger transaction that will also see a number of properties optioned to the major gold producer.

The arrangement will see Kirkland Lake subscribe to a private placement financing to the tune of $2.4 million at a price of $0.10 per share. A total of 24.4 million common shares are to be issued in connection with the financing.
As part of the financing, Kirkland lake is to also have right of first refusal for potential joint venture, sale or royalty agreements for the firms properties, as well as anti-dilution rights. Such rights remain in effect provided Kirkland maintains at least a 5% interest in the company.
Furthermore, Orefinders Mirado, McGarry and Knight projects have been optioned to Kirkland Lake as part of the arrangement. An option to acquire a 50% stake in each project over five years has been granted, contingent on $10.0 million being spent in the ground, with a minimum $1.0 million spent in the first year. Orefinders will remain as the operator during the option agreement.
Additionally, once fully fulfilled, a joint venture is to be formed, after which Kirkland can acquire an additional 25% stake by incurring $50 million within the first five years of the joint venture, during which time Kirkland will act as operator.
Orefinders Resources last traded at $0.09 on the TSX Venture.
Information for this briefing was found via Sedar and Orefinders Resources. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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