Agnico Eagle To Acquire O3 Mining For $1.67 A Share In Cash

Agnico Eagle Mines (TSX: AEM) is set to expand its Canadian Malartic Complex in Quebec with the addition of O3 Mining (TSXV: OIII). The gold producer this morning announced that it has entered into a definitive agreement for the friendly takeover of O3.

The arrangement will see O3 Mining shareholders receive $1.67 in cash for each share of O3 held, which values the explorer at $204 million on a fully diluted basis. The offer represents a premium of 57% to the 20-day volume weighted average price of O3.

The draw to O3 for Agnico is its Marban Alliance property, which is adjacent to the Canadian Malartic Complex. The property currently boasts a resource estimate of 32,000 indicated gold ounces and 1.7 million inferred gold ounces at 1.03 g/t, which is found at the Marban deposit. A 2022 pre-feasibility study meanwhile estimated a net present value (5% discount) of $463 million on an after-tax basis, based on $1,700 gold.

“Consistent with our regional strategy, this transaction is a tuck-in of the Marban deposit to our Canadian Malartic complex. The Marban deposit is expected to be complementary to other “Fill-the-Mill” opportunities at Canadian Malartic, further improving the production profile at a long-life world class asset,” commented Ammar Al-Joundi, CEO of Agnico.

The offer is set to occur via a take-over bid, with a circular to be mailed on December 19. Shareholders of O3 will then have at least 35 days to accept the offer. The arrangement is conditional on at least 66.7% of shareholders accepting the offer.

Directors and officers of O3, along with Extract Advisors LLC and Franklin Templeton managed funds, which collectively represent 22% ownership in O3, have entered into lock-up arrangements to tender their shares for the offer.

Agnico Eagle last traded at $123.76 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.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

O3 Mining Intersects 12.0 g/t Gold Over 8.3 Metres

O3 Mining (TSXV: OIII) this morning provided the latest assay results from its ongoing drill...

Monday, January 24, 2022, 07:50:46 AM

O3 Mining Reports 4.7 g/t Gold Over 3.8 Metres At Marban

O3 Mining Inc. (TSXV: OIII) this morning provided an update on its ongoing drill program...

Thursday, July 8, 2021, 08:06:54 AM

Kirkland Lake Gold Discontinues Automatic Share Purchase Program

Kirkland Lake Gold (TSX: KL) appears to be in capital preservation mode following the merger...

Wednesday, September 29, 2021, 08:34:50 AM

Agnico Eagle Q3 2024 Results: Record Cash Flow Amid Rising Costs

Agnico Eagle Mines Limited (TSX: AEM) reported its third-quarter 2024 results, achieving gold production of...

Wednesday, October 30, 2024, 08:03:00 PM

Agnico Eagle Takes 14.99% Stake In Collective Mining With $63.4 Million Investment

Collective Mining (TSX: CNL) has managed to secure a substantial investment from Agnico Eagle Mines...

Friday, March 14, 2025, 08:21:38 AM