KL - Why These 2 Gold Stocks Are Making Big Moves Today
Shares of Kirkland Lake Gold (NYSE: KL) tumbled more than 15% by 10:30 a.m. EST on Monday. Driving down the gold mining stock was the announcement that it's buying fellow Canadian gold miner Detour Gold (OTC: DRGDF). That news, on the other hand, sent Detour's shares up almost 10% at one point this morning.
Kirkland Lake Gold has agreed to acquire Detour Gold in an all-stock deal valuing its rival at 4.9 billion Canadian dollars ($3.7 billion). Investors in Detour will receive 0.4343 shares of Kirkland Lake Gold for every share they currently own. That ratio implies a deal value of CA$27.50 per share ($20.66 per share), which is a 24% premium to Detour's closing price on Friday.
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