Kirkland Lake Gold buying Detour Gold in deal worth $4.9 billion

Kirkland Lake Gold is in the process of buying Detour Gold.

The all-share deal is worth $4.9 billion, and values Detour shares at $27.50 apiece.

Both companies operate in the northeast.

Kirkland Lake Gold has operations in both Kirkland Lake and Matheson. Detour Gold has an operational gold mine about 300 kilometres northeast of Timmins.

Once the deal is completed, existing Kirkland Lake Gold shareholders will own about 73 per cent of the combined company, while Detour Gold shareholders will hold about 27 per cent.

"The addition of Detour Lake provides an opportunity to add a third cornerstone asset that is located in our backyard," Tony Makuch, chief executive officer of Kirkland Lake Gold, said in a statement.

The deal requires approval by a two-thirds majority vote by Detour Gold shareholders and a majority vote by Kirkland Lake Gold shareholders, in addition to regulatory and court approvals.