Two Northern Ontario mining companies are merging. Kirkland Lake Gold is buying St. Andrews Goldfields to create an intermediate gold producer. Kirkland will pay about $178-million Canadian for St. Andrews. The merger will create a company capable of producing up to 310,000 ounces of gold a year for Kirkland Lake Gold. The proposal needs two thirds shareholder approval and both companies are recommending shareholders accept the deal when the merger is put to a vote at a special meeting in January. St. Andrews has mines near Kirkland Lake.