Kirkland Lake Gold drops plans to sell assets, stake

Mon Mar 31, 2014 11:18am EDT
 
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March 31 (Reuters) - Canadian miner Kirkland Lake Gold Inc said on Monday it had dropped its plans to sell assets or a stake after failing to attract a suitable offer, sending its shares down nearly 5 percent.

The company started a strategic review in January following a 28 percent decline in the price of gold in 2013, its biggest annual drop in 32 years.

The fall came as Kirkland was boosting production and hiring at its operation in Kirkland Lake in northern Ontario. That effort could eventually cut costs per ounce, but in recent quarters expenses have been above long-term targets.

"While the company received several expressions of interest, a transaction did not materialize," Kirkland said in a statement on Monday.

Kirkland shares were down nearly 5 percent at C$3.43 in late morning trade on the Toronto Stock Exchange. The stock rose about 20 percent till Friday's close since Jan. 6. (Reporting by Ashutosh Pandey in Bangalore; Editing by Sriraj Kalluvila)