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Fresnillo enters Canada with $780m offer for Probe Gold

Probe owns the Beaufor mine site (pictured), which within the boundaries of its flagship Novador property.

Probe owns the Beaufor mine site (pictured), which within the boundaries of its flagship Novador property.

31st October 2025

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Mexico’s Fresnillo announced on Friday it would buy Probe Gold for C$780-million in cash, giving the world’s biggest primary silver producer control of the Canadian explorer’s Novador gold project in Quebec.

Under the terms of the deal, Probe shareholders will receive C$3.65 a share, representing a 39% premium to Probe’s closing price on the TSX on Thursday.

The offer is expected to close in the first quarter of 2026, subject to shareholder and court approvals.

The board of Probe has unanimously recommended that shareholders vote in favour of the transaction. All directors and officers, along with Eldorado Gold, which together hold about 12% of the company, have entered into voting support agreements with Fresnillo.

“This transaction offers an attractive premium and represents an excellent outcome for our shareholders,” Probe CEO David Palmer said in a statement. “After nine years of steady progress advancing the Novador project, we believe this is an opportune moment to transfer the project to an experienced operator.”

Analysts at Peel Hunt said the acquisition suggests Fresnillo’s management is seeking to address investor concerns about the lack of material growth within its portfolio. However, they noted the move could also signal further delays in monetising the company’s existing exploration and development assets.

Fresnillo, listed in London and Mexico, operates eight mines and four advanced exploration projects in Mexico, with additional interests in Peru and Chile. The company had a market capitalisation of about $22-billion and $1.8-billion in cash as of June 30.

Probe, which owns the Novador and Detour Gold Quebec projects, said the transaction gave shareholders immediate liquidity and removed construction and execution risks associated with advancing the projects independently.

 

Edited by Creamer Media Reporter

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