Kirkland Lake Discoveries raises $20 million from upsized financing
Kirkland Lake Discoveries Corp. [KLDC-TSXV] said Thursday it has raised $20 million from an upsized brokered private placement led by financier Eric Sprott. The amount raised includes the exercise in full of the agents’ option to increase the size of the offering.
Under the offering, the company issued 29.4 million flow-through common shares priced at 40 cents per FT share for gross proceeds of $11.8 million, as well as 5.7 million special flow-through common shares priced at 48.3 cents per share for gross proceeds of $2.75 million. It also issued 16 million common shares priced at 35 cents each for gross proceeds of $5.6 million.
The offering included a lead order strategic investment from financier Eric Sprott. “We are thrilled to welcome Eric’s continued support as a cornerstone investor,’’ said Kirkland Lake CEO Stefan Sklepowicz. “We view his participation as a strong endorsement of our team and the potential of our Kirkland Lake portfolio, and this offering positions us well to advance our drill-ready targets.’’
Kirkland Lake Discoveries shares advanced on the news, rising 2.86% or $0.01 to 36 cents. The shares trade in a 52-week range of 67 cents and 14.5 cents.
Kirkland Lake has assembled a 420-square killometre exploration portfolio in the Kirkland Lake region of Ontario’s Abitibi greenstone belt. With exploration permits in place, the company said it is positioned to advance a pipeline of drill-ready targets at KL South, KL West and KL East, supported by anomalous soil trends, historical mineral showings and structurally controlled intersections.
The company recently released results from a drill hole that targeted the North Zone of the Mirado deposit on its KL South Project, which is located 18 kilometres south of Kirkland Lake. It said hole KLM26-030 is part of an ongoing summer 2026 drill program, with 21 additional holes still pending.
KL South hosts a near-surface historical inferred resource of 442,000 ounces of gold at 1.29 g/t at the Mirado Property.
The company said KLM26-030 successfully intersected broad intervals of gold mineralization and high-grade gold in a silica-flooded zone, including 25.85 g/t over 3.0 metres within a 7.24 g/t gold over 11.10-metre interval from 353.00 metres at the Mirado Fault, beneath the historical deposit.
“Hitting 25.85 g/t gold over 3.0 metres at depth is exactly the type of intercept we were looking for to confirm our structural model,’’ said Sklepowicz. “These high-grade feeder zones are the lifeblood of the major multi-million-ounce gold deposits in the Kirland Lake camp,’’ he said. “Demonstrating this high-grade continuity at Mirado drastically increases the scale and potential of our project. We now have a broad surface expression of 1.3 kilometres of gold mineralization and multiple high-grade zones that appear to be feeding it.’’