Agnico Eagle to acquire O3 Mining in C$204m cash transaction
The Marban deposit is adjacent to Agnico-Eagle's Canadian Malartic complex (pictured).
Canadian miner Agnico Eagle Mines on Thursday announced the acquisition of O3 Mining in a C$1.67-a-share cash transaction, valued at about C$204-million.
O3 Mining’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).
Agnico Eagle president and CEO Ammar Al-Joundi said in a statement that the transaction was aligned with the company’s regional strategy. “The Marban deposit is complementary to other ‘fill-the-mill’ opportunities at Canadian Malartic, improving production at a long-life, world-class asset.”
O3 Mining president and CEO José Vizquerra welcomed the deal, highlighting the premium of 57% to the 20-day volume-weighted average price of the company.
“This represents a substantial nondilutive outcome for shareholders, validating the efforts of the O3 Mining team,” Vizquerra noted.
O3 Mining’s largest shareholder, Gold Fields, has agreed to a lock-up agreement with Agnico Eagle to tender its common shares of O3 Mining. Gold Fields owns about 17% of the outstanding common shares on a basic basis. Including its lock-up agreement with Gold Fields, Agnico Eagle has now entered into lock-up agreements with O3 Mining shareholders owning an aggregate of about 39% of the outstanding common shares on a basic basis, including each of the directors and officers of O3 Mining.
The offer has been unanimously recommended by the O3 Mining board and special committee of independent directors.
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