Thursday, October 28

Canada’s Agnico Eagle to buy Kirkland Lake Gold in near $11 bln stock deal


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Canada’s Agnico Eagle Mines Ltd is buying rival Kirkland Lake Gold Ltd in a stock deal valued at C$13.51 billion ($10.68 billion).

Kirkland Lake Gold shareholders will receive 0.7935 of an Agnico Eagle common share for each stock they hold, the two companies said on Tuesday. The deal values ​​each Kirkland share at C$50.63, or a discount of 9% to the stock’s Monday close, according to Reuters’ calculation.

Upon closing of the merger, Agnico is expected to have $2.3 billion of available liquidity, a mineral reserve base of 48 million ounces of gold (969 million tonnes at 1.53 grams per tonne) and a pipeline of development and exploration projects.

Agnico Eagle shareholders will own about 54% of the combined company, while those of Kirkland Lake will have a 46% ownership. ($1 = 1.2652 Canadian dollars) (Reporting by Sahil Shaw in Bengaluru; Editing by Anil D’Silva)



financialpost.com