Agnico Eagle to buy TMAC for C$286.6 million
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(Kitco News) - The drama surrounding TMAC Resources and its Hope Bay mine appears to be coming to a close as Agnico Eagle Mines announced its plans to acquire the company.
In a press release Tuesday, Agnico Eagle said that it was offering to buy all outstanding TMAC shares for C$2.20 per share in cash, representing an increase of C$0.45 per share, compared to the offer price of C$1.75 offered by Shandong Gold Mining.
The deal is valued at approximately C$286.6 million.
"The Offer Price represents a premium of approximately 26% to the offer price of C$1.75 per TMAC share that was to be paid by Shandong and a premium of approximately 66% to TMAC's 20-day volume-weighted average price as at January 4, 2021," the company said in a press release.
According to the company, the transaction is being effected by way of assignment to Agnico Eagle of the arrangement agreement dated May 8, 2020. The arrangement was approved by 97.08% of the votes of TMAC shareholders that were represented at the special meeting held on June 26, 2020; there will be no further shareholders' meeting in connection with the transaction.
Agnico's bid for TMAC comes after the Canadian government stepped in to stop the sale of one of the nation's gold mines to a Chinese company.
The deal will also solidify Agnico's leadership role within the mining sector in Canada Nunavut Territory. This would be the third mine the senior producer owns in the northern territory.
"We are very pleased to have the opportunity to bring our extensive northern operational and community experience to the Hope Bay Mine and the Kitikmeot Region of Nunavut. Together with the TMAC team and our Nunavut partners, we look forward to advancing exploration and expansion initiatives to realize the full potential of the Mine and its large unexplored land package," said Sean Boyd, CEO of Agnico.
"I am very excited to welcome Agnico Eagle to Hope Bay," added Jason Neal, president and CEO of TMAC, in a statement. "Agnico Eagle is one of the strongest gold producers internationally, a Canadian champion and has been operating in Nunavut for more than a decade with a great track record with communities, employees and the environment."