Canadian miner Agnico Eagle Mines has moved closer to completing its acquisition of TSX-V-listed O3 Mining after securing 96.5% of the company’s outstanding shares through its takeover bid.

Agnico Eagle has acquired 114.8-million O3 shares tendered during the initial offer period, representing 95.6% of issued shares. An additional 4.36-million shares were tendered during the mandatory ten-day extension period, bringing Agnico Eagle’s total stake to 96.5%. 

The company will pay the remaining shareholders by February 6, 2025, at the offer price of $1.67 a share, amounting to a total payout of $7.28-million for the additional shares.

Agnico Eagle says it will proceed with a subsequent acquisition transaction to secure 100% ownership of O3. Its subsidiary, Agnico Eagle Abitibi Acquisition, will merge with O3 Mining under the Business Corporations Act (Ontario), creating a wholly-owned Agnico Eagle entity.

Under the amalgamation terms, each remaining O3 Mining shareholder will receive one redeemable preferred share in the new entity for each O3 Mining share held. These preferred shares will be immediately redeemed for $1.67 a share in cash, the same price offered in the takeover bid.

The amalgamation requires approval from two-thirds of votes cast at a special shareholder meeting, as well as a majority vote excluding Agnico Eagle’s shares under minority protection rules. With Agnico Eagle already controlling more than two-thirds of O3’s shares, the company has the necessary votes to ensure approval.

Following the acquisition, O3  will be delisted from the TSX-V and will apply to cease being a reporting issuer under Canadian securities laws.

O3’s primary asset, the 100%-owned Marban Alliance property in Québec’s Abitibi region, is adjacent to Agnico Eagle’s Canadian Malartic complex.

The Marban Alliance includes the Marban deposit, an advanced exploration project with an estimated 52.4-million tonnes of indicated resources grading 1.03 g/t gold (1.7-million ounces) and 1.0-million tonnes of inferred resources grading 0.97 g/t gold (32 000 oz).