Orefinders Resources Looks to Partner Kirkland Lake Gold to Unlock Value in Ontario's Kirkland Lake District

• Orefinders Resources recently announced a deal with Kirkland Lake Gold on two projects. The deal provides $60 million in spending by Kirkland to earn 75% interest.
• CEO Steve Stewart believes this deal drastically reduces downside risk and provides significant upside potential. It brings a major partner into Orefinders' projects.
• Stewart aims to use Orefinders' portion of the $15 million investment to opportunistically consolidate and acquire new assets near its existing projects. The goal is to build critical mass.
• Drill programs at Orefinders' Night project and Mistango's Kirkland West project are nearing completion. Next steps will be phase 2 drilling at each, as well as new targets.
• Stewart stresses that Orefinders retains control of the projects and will lead exploration. But Kirkland's expertise in the region will provide critical input on where to explore.

About Orefinders Resources

Orefinders Resources Inc. is a junior gold exploration company focused on the Kirkland Lake District in northeastern Ontario, Canada. The company has two main exploration projects - Knight and McGarry - located adjacent to major gold deposits owned by mega-producer Kirkland Lake Gold. With a market capitalization around $20 million, Orefinders is well positioned in a highly prospective region and boasts a strong balance sheet after a recent strategic investment by Kirkland Lake.

Interview with Stephen Stewart, CEO of Gold Developer, Orefinders Resources

The Transformational Kirkland Lake Gold Partnership

Orefinders entered into an option agreement with Kirkland Lake Gold which saw the major invest $7.5 million into the junior for 10% equity stakes in both Orefinders and its sister company Mistango River Resources. The deal also provides Orefinders with a free carry on exploration spending up to $60 million on its two main projects, allowing substantial drilling with no shareholder dilution.

Orefinders CEO Steve Stewart explained that while the company gave up some upside, the partnership drastically reduces risk and provides third-party validation of its assets from the premier operator in the region. With a market cap of $13 billion and $800 million in the bank, Kirkland's investment signals confidence that Orefinders' ground may host significant mineralization.

Unlocking Value Through the Drill Bit

The partnership provides Orefinders with a war chest of $15 million to deploy across its portfolio. The company remains operator but will collaborate with Kirkland's technical team to design upcoming drill programs. Orefinders had been planning an aggressive phase two drill campaign at its Knight project following strong early results, including intercepts of 15 g/t gold over 7 meters. The McGarry project is also a top priority, located adjacent to the 5 million ounce Casa Berardi deposit.

While cautious about preannouncing plans before aligning with Kirkland, Stewart indicated that Knight and McGarry will be the main focus in the near-term. However, the enlarged budget allows the company to accelerate activities across its entire pipeline of projects and targets in the district. Orefinders aims to systematically test its properties to depth using new geophysical techniques not previously applied.

Delivering Value Through Consolidation

Beyond the drill bit, Orefinders intends to capitalize on its strong financial position to opportunistically acquire quality assets in the Kirkland Lake region. The company has a track record of accretive M&A, gaining control of Mistango River for just $250,000 in 2019. Orefinders will remain disciplined in its consolidation strategy, avoiding overpriced or promotional exploration plays.

With Kirkland Lake as a supportive partner and anchor shareholder, the company is well positioned to take advantage of the turbulent market to build critical mass. Consolidation provides another potential avenue to realize significant returns for shareholders.

Conclusion

The recent deal with Kirkland Lake Gold validates the quality of Orefinders' assets in the world-class Kirkland Lake district and provides the financial backing to systematically test its properties. The company offers investors exposure to a portfolio of drill-ready targets adjacent to multi-million ounce deposits, with funding secured to accelerate exploration.

While success is not guaranteed, Orefinders is led by a proven team with skin in the game and a track record of accretive M&A. The stock appears attractively priced given the expanded optionality. With majors hungry for resources to replenish dwindling reserves, Orefinders' strategic land position offers compelling leverage to potential new discoveries in a top-tier jurisdiction. The junior's partnership with Kirkland Lake Gold enhances the prospects for value creation.