Pan American and Agnico Eagle sign deal to acquire Yamana Gold

The Arrangement would establish Pan American as a major precious metals producer in Latin America, with approximately 28.5 - 30.0 million oz of annual silver production and approximately 1.1 - 1.2 million oz of annual gold production, based on Pan American’s and Yamana’s 2022 guidance. The combined portfolio will consist of 12 operations concentrated in Latin America, a region where Pan American has over 28 years of proven expertise and experience operating mines. With the addition of four operating mines generating strong free cash flow, the arrangement is expected to enhance Pan American’s overall financial position and improve its ability to internally fund its growth projects.

The consolidation of the Canadian Malartic mine would place a successful asset into the hands of a well established operator to develop the mine’s full potential and gives Agnico Eagle operational control during the remaining development period of the Odyssey project and future projects. Most importantly, Agnico Eagle has the unique ability to monetise future additional mill capacity at the Canadian Malartic mine, given its extensive operations and strategic land position in the region.

Pan American’s unparalleled track record in Latin America and Agnico Eagle’s deep existing knowledge of the Canadian Malartic mine and presence in the Abitibi region uniquely position the two companies to effectively operate and rapidly unlock further value from Yamana’s portfolio of assets to the benefit of the shareholders and other stakeholders of all three companies.

Michael Steinmann, President & CEO of Pan American, commented:

“The combination of our existing portfolio with Yamana’s high-quality assets in Latin America would create a powerful precious metals mining company in the Americas with leading exposure to silver, and represents an exciting opportunity for growth for both Yamana and Pan American shareholders. The transaction is aligned with our disciplined approach of creating shareholder value through accretive acquisitions, together with our expertise in discovering, building and operating mines. Our established presence and expertise in Latin America will enable us to leverage the synergies and growth potential of Yamana’s assets in the region in a way that is highly complementary to Pan American’s existing mines there.”

Ammar Al-Joundi, President & CEO of Agnico Eagle, added:

“This transaction is a continuation of Agnico Eagle’s strategy to operate in regions where we believe we have a competitive advantage, in this case over 50 years of operating history. The full integration of the Canadian Malartic team and landholdings into our operational base in the region would enhance our Abitibi operating platform, placing Agnico in the unique position to further optimise the asset and unlock potential value through exploration and the leveraging of existing infrastructure, people and regional relationships.”

Read the article online at: https://www.globalminingreview.com/mining/09112022/pan-american-and-agnico-eagle-sign-deal-to-acquire-yamana-gold/