Kirkland Lake Discoveries Corp. (TSX-V: KLDC) (formerly Warrior Gold Inc.) is pleased to announce that the Company has completed its acquisition of the Lucky Strike property and related private placement offering of Subscription Receipts (as defined below).

Acquisition of Lucky Strike Property

As previously announced in its news release dated February 22, 2023, the Company entered into an asset purchase agreement with New Found Gold Corp. dated February 16, 2023, as amended May 8, 2023, pursuant to which the Company has now acquired from NFG all of the properties comprising the Lucky Strike Property located in the Kirkland Lake gold camp in Ontario, Canada. Pursuant to the Purchase Agreement, the Company acquired the Lucky Strike Property by issuing to NFG 28,612,500 common shares in the capital of the Company, and granting to NFG a 1.0% net smelter return royalty on the Lucky Strike Property pursuant to a royalty agreement. The common shares issued pursuant to Purchase Agreement are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. In addition, under the terms of the Purchase Agreement, NFG agreed to use commercially reasonable efforts to distribute all the common shares of the Company that it holds to its shareholders, pro rata, within one year following the completion of the Transaction.

The Company’s board of directors was reconstituted in conjunction with the completion of the Transaction and now consists of four directors: Denis Laviolette, Danièle Spethmann, Gary Nassif, and Stephen Burleton. Two additional directors may be nominated by NFG later.

Consolidated Land Package

The Lucky Strike Property, located immediately east of the Company’s neighboring land package in Kirkland Lake, Ontario, consists of 653 unpatented mining claims covering approximately 11,367 hectares (114 km²). The consolidated properties of the Company now form the largest land package in the Kirkland Lake Gold Camp with an area of approximately 38,000 hectares (380 km²). The consolidated land package is 53 kilometres in length and up to 20 kilometres wide and hosts past-producing gold and copper operations, several with underground workings, numerous pits and many mineral showings of gold, copper, silver, critical and other precious metals.

The property lies within the Blake River mafic volcanic formation, the same host rocks as Agnico Eagle’s Upper Beaver deposit and roughly eight kilometres north of the “Mile of Seven Mines”, which includes the Macassa Mine. The consolidation of the properties represents property acquisitions over nine years from more than 18 prospectors and owners of patented claims.

Danièle Spethmann, President and CEO of Kirkland Lake Discoveries, stated: “The completion of this transaction and the consolidation of this highly prospective land package in a renowned mining district is a rare and very exciting opportunity. The addition of Denis Laviolette as a director of the Company strengthens the Company’s board and helps position the Company to realize its goal of achieving exploration success within the combined properties.”

Private Placement Financing

In connection with the Transaction, the Company has closed its best-efforts brokered private placement offering through the issuance of 18,690,000 subscription receipts of the Company at a price of $0.25 per Non-FT Subscription Receipt, and 11,547,299 “flow-through” subscription receipts of the Company at a price of $0.275 per FT Subscription Receipt for aggregate gross proceeds of $7,848,007. Canaccord Genuity Corp. acted as agent in connection with the Offering.

The Company entered into a subscription receipt agreement dated May 25, 2023  with the Agent and Olympia Trust Company, as subscription receipt agent. Following satisfaction of the Escrow Release Conditions in accordance with the Subscription Receipt Agreement, each Non-FT Subscription Receipt entitles the holder thereof to receive one unit of the Company, subject to adjustments. Each Non-FT Unit will consist of one Common Share and one Common Share purchase warrant of the Company. Upon satisfaction of the Escrow Release Conditions, each FT Subscription Receipt entitles the holder thereof to receive one unit of the Company, subject to adjustments. Each FT Unit will consist of one Common Share and one Common Share purchase warrant of the Company. Each FT Unit Share and FT Warrant will qualify as a “flow-through share” as defined in subsection 66(15) of the Income Tax Act, R.S.C. 1985 c. 1 (5th Supp.), as amended (the “Tax Act“). Each Warrant will be exercisable by the holder thereof into one Common Share for a period of two (2) years following the date of the Escrow Release (as defined below) at an exercise price of $0.40 per Warrant Share, subject to adjustments.

The Company satisfied the Escrow Release Conditions on May 25, 2023. The conversion of the Subscription Receipts and the release of the escrowed proceeds of the Offering is expected to occur on or about May 30, 2023.

Following Escrow Release, the net proceeds from the Offering are intended to primarily be used to fund the Company’s initial planned exploration program at the combined Kirkland Lake/Lucky Strike Property and for general working capital purposes.

In consideration of the services rendered in connection with the Offering the Company paid cash commissions in the aggregate amount of $467,880 and issued an aggregate of 1,802,238 broker warrants of the Company, exercisable into the same number of common shares of the Company at a price per Broker Warrant Share equal to the Non-FT Offering Price for a period from the date of the Escrow Release until 24 months following the date of the Escrow Release. The Company anticipates the common shares will resume trading on or about May 31, 2023.

The Offering was conducted in all provinces of Canada pursuant to private placement exemptions and in such other jurisdictions as were agreed to by the Company and the Agent. The Offering remains subject to the final approval of the TSXV. All securities issued in connection with the Offering are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About Kirkland Lake Discoveries Corp.

Kirkland Lake Discoveries Corp is a TSX Venture Exchange-listed company that has consolidated a district-scale and prospective land package in the Kirkland Lake gold camp in Ontario, Canada. The properties are hosted in the Abitibi Greenstone Belt, one of the world’s best-endowed greenstone belts, with +200 million ounces of gold produced to date. The properties are host to regional and property-scale mineralized structures that are considered second-order structures off the Larder Lake Cadillac Deformation Zone – LLCDZ – the regional structure in the belt known to be spatially associated with the gold mines hosted in the camp.

The properties assembled include the 100%-owned Lucky Strike Property, Goodfish-Kirana, the Arnold property, the optioned KL West and KL Central. The Company’s land position comprises approximately 38,000 ha, over 1,338 claims and 29 patented claims in the Kirkland Lake region.​