Canadian gold miner Kirkland Lake to buy St Andrew Goldfields

Mon Nov 16, 2015 6:08pm EST
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(Reuters) - Kirkland Lake Gold Inc KGI.TO has agreed to purchase fellow Canadian gold miner St Andrew Goldfields Ltd SAS.TO to create a multi-asset, Ontario-focused mid-sized gold producer, the two companies said on Monday.

Under the all-share deal, St Andrew shareholders will receive 0.09 of a Kirkland share for each share of St Andrew stock they own - a ratio the companies said was a 25 percent premium to St Andrew's closing share price on Monday.

The ratio implies a total equity value of around C$178 million ($133.54 million).

(Reporting by Nicole Mordant in Vancouver)