TORONTO (miningweekly.com) – The TSX-listed stock of Ontario-focused gold miner Kirkland Lake Gold on Monday slid by as much as C$0.39 a share after CEO George Ogilvie revealed that the company would undertake a strategic review, which would consider all alternatives, including the disposal of shares or assets.

The board had appointed a special committee comprising independent directors to review and evaluate proposals considered as part of the strategic review process and to assess whether any such proposals might be more desirable than the continued operation of the company on a standalone basis, and to make recommendations to the board thereon.

"While we continue to work on our plan to improve the company's margins, the board has approved a process to review and evaluate potential alternatives that may further maximise value for our shareholders.

"The strategic review will encompass a careful evaluation of the company's business plan, development strategy, market valuation and capital structure and will consider various alternatives for the company, including the potential sale of the company's shares or assets, and any other options identified by executive management with the fundamental objective of achieving the best value for the company's shareholders,” Ogilvie, who joined Kirkland in November last year while concurrently being president and CEO of junior Canadian copper/gold miner Rambler Metals and Mining, said.

Dawn Whittaker was appointed chairperson of the special committee, which is comprised of Whittaker, Brian Bayley and Pamela Klessig.

National Bank Financial and Stikeman Elliott had been appointed to advise the company during the review process.

Kirkland said that its mine plan optimisation programme would be unaffected by this review process.

The company also announced that Brian Hinchcliffe had resigned as deputy chairperson and as a member of the board with immediate effect. Hinchcliffe had, however, agreed to support the strategic review process in a consultant capacity.

Kirkland Lake last month announced that it had widened its second-quarter net loss to C$3.9-million, or C$0.06 a share, compared with a loss of C$1.8-million, or C$0.03 a share, in the same period last year.

The Ontario-focused miner said that during the three months ended October 31, interest and finance expenses, in addition to increased depreciation and depletion costs, negatively impacted on its financial performance.

During the quarter, the mine produced 31 387 oz of gold from 105 670 t of ore. It sold 30 530 oz of gold in the period, which was 1% higher than the first quarter.

Kirkland Lake had also reduced spending in the current financial year ending April 30, 2014, by C$2.1-million, to bring total annualised savings to about $5-million.

Some of the cost-saving initiatives included placing a freeze on hiring and terminating some staff’s employment contracts, while it would also reduce exploration drilling activity to one surface drill and two underground mills.

Kirkland’s shares traded down 8.33% at C$2.75 apiece on Monday at noon.