Kirkland Lake rejects alternative Gold Fields, Silver Standard bids valued at C$1.44bn – by Henry Lazenby (MiningWeekly.com – November 12, 2016)

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VANCOUVER (miningweekly.com) – Canadian miner Kirkland Lake Gold has rebuffed several alternative transactions, including three joint unsolicited offers by South Africa-based Gold Fields and Vancouver-based Silver Standard Resources, valued at up to C$1.44-billion.

In response to media rumours and a request on Friday by the Investment Industry Regulatory Organisation of Canada, Kirkland Lake issued a statement identifying the suitors and provided details of the sweetened offers, reaffirming that the revised proposal was not financially superior to the company’s C$1-billion all-scrip deal with Newmarket Gold, announced on September 29.

Kirkland Lake acknowledged that it recently received a sweetened revised acquisition proposal from Silver Standard Resources worth C$1.44-billion payable in cash and Silver Standard shares. The latest offer represented a premium of about 50% to Kirkland Lake’s market capitalisation Friday.

In an October 28 proxy circular, Kirkland Lake noted that it had received alternative bids, stopping short of providing further details.

Kirkland Lake advised that its board and special committee had determined after receiving advice from its legal advisers and three separate financial advisers, that the revised proposal was not financially superior to the Newmarket transaction.

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