Kirkland Lake closes $10.67-million private placement

2009-02-04 18:16 ET - News Release

Mr. Brian Hinchcliffe reports

KIRKLAND LAKE GOLD INC.: PRIVATE PLACEMENT OF 2,200,000 UNITS FOR PROCEEDS OF CDN$10.67 MILLION COMPLETED

Kirkland Lake Gold Inc. has completed a non-brokered private placement for 2.2 million units at a price of $4.85 per unit for gross proceeds of $10.67-million. Each unit consisted of one common share and one-quarter of a share purchase warrant. Each whole warrant is exercisable to purchase one common share for a period of 12 months at a price of $5.50. Subject to receipt of regulatory approval, the company proposes to privately place a second tranche of 620,000 units for gross proceeds of approximately $3-million.

The proceeds from the financing will be used for working capital and to finance further development of the company's mining operations in Kirkland Lake, Ont.

The common shares issued and issuable pursuant to the private placement will be subject to restrictions on their transfer for a period of four months from the date of their issue. Application has been made to the AIM Market of the London Stock Exchange for the shares issued on closing to be admitted for trading on Feb. 6, 2009. Trading in such shares will commence following the expiry of the four-month hold period.

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