Agnico Eagle Mines (TSX: AEM) has been successful in its efforts to have shareholders tender their shares of O3 Mining (TSXV: OIII) to the company. The two entities jointly announced this morning that Agnico has managed to acquire 94.1% of the outstanding common shares of the company.
The tender offer saw Agnico offer $1.67 per share to O3 shareholders, which at the time of announcement in early December represented a premium of 57%. The offer price values O3 Mining at approximately $204 million on a fully diluted basis.
Consideration payable for the currently tendered shares amounts to $184.4 million, which Agnico has indicated will be paid by January 28. The expiry date on the offer meanwhile has been extended by ten days to allow for the remaining shareholders of O3 to tender their common shares for the same all cash figure of $1.67 a share.
Sponsored · First Phosphate Corp.
Shares that are not tendered will be pursued via a second-step transaction. O3’s CEO, CFO, and corporate secretary will remain in their roles until that second-step transaction is complete, while the board of directors has been reconstituted to consist of Agnico Eagle representatives.
“While providing an opportunity for our shareholders to realize immediate value at a significant premium, the transaction will also enable the efficient advancement of the Marban Alliance project by Agnico Eagle, an experienced operator that has the financial strength, mining expertise and community commitment to take the project to its next stage of development,” commented Jose Vizquerra, CEO of O3 Mining.
Agnico Eagle last traded at $127.48 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
