Agnico Eagle Mines Ltd has agreed to acquire all of the Canadian exploration assets of Canadian Malartic Corporation (CMC). Which is a corporation 50/50 owned and operated by Agnico Eagle and Yamana Gold Inc.
The acquired assets include the Kirkland Lake and Hammond Reef Gold projects (the Transaction).
The Transaction is being structured as an asset deal, whereby Agnico Eagle will acquire all of Yamana's indirect 50% interest in the Canadian exploration assets of CMC, giving Agnico Eagle 100% ownership of CMC's interest in the assets on closing of the Transaction. The effective purchase price after the distribution of the sale proceeds by CMC to its shareholders will be US$162.5 million in cash. The Transaction will not affect the Canadian Malartic mine and related assets including Odyssey, East Malartic, Midway, and East Amphi, which will continue to be jointly owned and operated by the company and Yamana through CMC and the Canadian Malartic General Partnership (Canadian Malartic GP).
"The purchase of the CMC asset portfolio enhances our longer-term development pipeline, and provides us with potential production growth post our current mine buildout in Nunavut," said Sean Boyd, Agnico Eagle's Chief Executive Officer. "The Kirkland Lake property package enhances our current mineral reserves and offers near-term exploration upside, while the Hammond Reef project provides good optionality to a potential rise in the gold price."
Under the proposed Transaction, Agnico Eagle will acquire 100% of CMC's Canadian exploration assets located in Ontario and Quebec, other than CMC's interests in Canadian Malartic GP and the Canadian Malartic mine. CMC's principal Canadian exploration assets include the Kirkland Lake and the Hammond Reef Gold projects, as well as additional mining claims and assets located in Ontario and Quebec. The Kirkland Lake project covers approximately 27 291 ha in northeastern Ontario and mineral reserves and mineral resources have been outlined on several properties. Key deposits in the Kirkland Lake area include: Upper Beaver, Anoki and McBean, Amalgamated Kirkland (AK) and Upper Canada. Hammond Reef is an advanced stage gold project covering approximately 31 145 ha in northwestern Ontario. The project contains well defined mineral resources.