Agnico Eagle buys exploration Cayden for $ 188 million

Canadian gold miner Agnico Eagle Mines Ltd has entered into an agreement to purchase all the shares of a Canadian exploration company Cayden Resources Inc for 205 million Canadian dollars (188 million dollars), the report said Agnico. Shares will be redeemed at 3.79 kan.dol. each, which represents a premium of 42.5% to the average share price over the last month. Cayden shareholders are able to get 0.09 shares of Agnico, and 0.01 kan.dol. per share. 

 

CEO of Agnico Sean Boyd said that the acquisition is in line long-term strategy, which involves the acquisition of promising gold mining project at an early stage of development. Cayden owns 100% of the deposit of El Barco (El Barqueno), and Morelos Sur (Morelos Sur) in Mexico. Results of exploration drilling at El Barco show the contents of 4.26 g / t gold and 0.06% copper at a depth of 20 m and 2.3 g / t gold and 0.15% copper, 44 m deeper. 

 

Shareholder vote is scheduled for the end of October, beginning of November. The deal must be approved by the shareholders of 2.3 Agnico. In this case, the entire management of the company, which owns approximately 19.8% of the company, has already agreed to the deal. It is expected that the transaction will be closed by the end of the year, in the case of receipt of all approvals. 

 

Agnico Eagle is a major Canadian gold mining company, founded in 1957 The company owns nine fields in Canada, Finland and Mexico. In 2014, Agnico plans to increase gold production by 24% to 1.36 million ounces (42.3 tonnes). In the current year, Agnico Eagle and Canadian Yamana Gold acquired 50% stake in Osisko Mining, which owns the largest gold deposit, Canadian Malartic (Canadian Malartic, annual production - 475 thousand. Ounces of gold and 422 thousand. Ounces of silver). 

 

September 10, 2014 

Prime. Gold Mining Gazette