Agnico Eagle to Acquire TMAC Resources for $225 Million
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Canadian gold mining company Agnico Eagle Mines has signed agreements to acquire TMAC Resources for approximately C$286.6 million ($225.16 million).
The company has reached agreements with Resource Capital Funds (RCF), Newmont Corporation, Shandong, and all TMAC directors and officers, who collectively hold nearly 62.3 percent of TMAC’s current outstanding common shares.
For the deal, Agnico Eagle has agreed to pay C$2.20 ($1.74) per share in cash for TMAC, which holds 100 percent stake in the Hope Bay Property.
The price represents a 26 percent of premium to the offer price of C$1.75 per share made by Shandong Gold.
With respect to the closing of the deal, Agnico Eagle is expected to retire TMAC’s outstanding debt and deferred interest and fees.
“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, Agnico Eagle’s vice-chairman and chief executive officer.
“I am very excited to welcome Agnico Eagle to Hope Bay. Our company spent almost the entirety of 2020 under the uncertainty of a strategic review process and the Canadian government review of the sale to Shandong, with an impending debt maturity, compounded by the anxiety of the global pandemic. Our employees showed great focus that delivered outstanding results. The Nunavut communities showed great patience. Sprott Lending provided accommodation and support,” said Jason Neal, TMAC’s president and chief executive officer.
“The acquisition being completed by Agnico Eagle is a great outcome for all stakeholders. 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,” added Neal.
“The sale of TMAC to Agnico Eagle is an excellent outcome for TMAC’s shareholders, employees and local communities. Agnico Eagle’s extensive experience in the Arctic, coupled with their clear commitment to the highest environmental, social and governance practices make them uniquely qualified to lead and realize the fullest potential of the Hope Bay gold district,” said Newmont’s President and Chief Executive Officer, Tom Palmer.
About Agnico Eagle Mines Limited
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its operating mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these countries as well as in the United States, Sweden and Colombia. Agnico Eagle and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983.
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