Kirkland Lake Gold raises stake in Osisko Mining

Kirkland Lake Gold (TSX: KL; NYSE: KL) has boosted its ownership in Osisko Mining (TSX: OSK) from 8.58% to about 13.61%.

The mid-tier gold producer reported it has invested about C$25 million to acquire 14.71 million Osisko shares at $1.70 apiece, bringing its total shares in the company to 32.63 million.

Kirkland Lake’s president and CEO, Tony Makuch, said the strategic investment increases its ownership interest in northwestern Quebec’s Urban Barry area, which he believes “has become a new, highly prospective mining camp in the prolific Abitibi Greenstone belt.”

Makuch noted that the Osisko investment was “complementary” to its existing interests in Metanor Resources (TSXV: MTO)  and Bonterra Resources (TSXV: BTR; US-OTC: BONXF) “both of which have high-potential exploration holdings in the same area.”

In addition, the investment brings “exposure to attractive, early stage exploration properties in close proximity to our Holt and Taylor mines, providing additional value potential around our existing asset base in Ontario,” Makuch said.

Kirkland Lake’s Holt and Taylor mines are situated in Matheson, Ontario. Its other producing mines are Macassa in northeastern Ontario, and Fosterville and Cosmo in Australia.

This year Kirkland Lake expects its mines will produce a total of about 635,000 ounces of gold.

Osisko Mining holds a 100% stake in the high-grade Windfall Lake gold deposit in Quebec, located between Val-d’Or and Chibougamau. It also owns a 100% stake in a large area of claims in the surrounding Urban Barry and nearby Quevillon area (over 3,300 sq. km), and a 100% interest in the Marban project in the heart of Quebec’s Abitibi gold mining district.

It also has assets in the Larder Lake mining division in northeastern Ontario, including the Jonpol and Garrcon deposits on the Garrison property, the Buffonta past-producing mine, and the Gold Pike mine property.