Agnico Eagle Mines to Acquire O3 Mining for $204 Million
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Agnico Eagle Mines and O3 Mining have entered into a definitive support agreement where Agnico Eagle has agreed to acquire all of the outstanding common shares of O3 Mining valued at approximately $204 million.
O3 Mining’s primary asset is its 100 percent owned Marban Alliance property located near Val d’Or, in the Abitibi region of Québec, and is adjacent to Agnico Eagle’s Canadian Malartic complex. The Marban Alliance property includes the Marban deposit, which is an advanced exploration project that could support an open pit mining operation similar to Agnico Eagle’s Barnat open pit operations at the Canadian Malartic complex. O3 Mining also owns 100 percent of the Alpha property and 100 percent of the Kinebik property.
The potential integration of the Marban Alliance property to the Canadian Malartic land package will create significant and unique synergies by leveraging Agnico Eagle’s regional operational expertise and existing infrastructure, including the Canadian Malartic mill and existing open pit workforce and equipment fleet.
“Consistent with our regional strategy, this transaction is a tuck-in of the Marban deposit to our Canadian Malartic complex. The Marban deposit is expected to be complementary to other fill-the-mill opportunities at Canadian Malartic, further improving the production profile at a long-life world class asset,” said Agnico Eagle’s President and Chief Executive Officer, Ammar Al-Joundi.
“Our extensive operation, exploration, and community experience is expected to enhance the value generated from the Marban Alliance property and unlock further potential at our Abitibi platform. We are looking forward to working with our partners and all stakeholders in the region as we continue to advance this opportunity,” added Al-Joundi.
“The all-cash offer at a significant premium to market is an excellent outcome for our shareholders and is validation of the efforts made by the O3 Mining team. Having diligently advanced the Marban Alliance project over the past five years, the timing is right for O3 Mining to sell to a more experienced operator that can efficiently navigate the project through permitting and construction,” said O3 Mining’s President and Chief Executive Officer, José Vizquerra.
“We believe Agnico Eagle is the gold standard in the precious metals space — it not only has the financial strength and the mining expertise to advance the Marban Alliance project, but shares our commitment to work in partnership with stakeholders in a socially responsible manner. Today’s offer represents a significant milestone for O3 Mining, and I would like to thank our employees, shareholders, First Nations partners, community partners, and the Province of Québec for their support over the years,” added Vizquerra.
Agnico Eagle is a Canadian based and led senior gold mining company and the third largest gold producer in the world, producing precious metals from operations in Canada, Australia, Finland, and Mexico. It has a pipeline of high-quality exploration and development projects in these countries as well as in the United States. Agnico Eagle is a partner of choice within the mining industry, recognized globally for its leading environmental, social and governance practices. The company was founded in 1957 and has consistently created value for its shareholders, declaring a cash dividend every year since 1983.
O3 Mining is a gold explorer and mine developer in Québec, Canada, adjacent to Agnico Eagle’s Canadian Malartic mine. O3 Mining owns a 100 percent interest in all its properties in Québec. Its principal asset is the Marban Alliance project in Québec, which O3 Mining has advanced over the last five years to the cusp of its next stage of development, with the expectation that the project will deliver long-term benefits to stakeholders.
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