Agnico Eagle To Acquire TMAC Resources For $2.20 Per Share

TMAC Resources (TSX: TMR) is being acquired. This time however, it isn’t by a China-based firm. The company this morning announced that it will be acquired by that of Agnico Eagle (TSX: AEM), with the transaction being effected by way of assignment of the prior arrangement that was in place with Shandong Gold Mining.

The benefit to shareholders here however, is that they are to receive $2.20 per share of TMAC currently held, an increase of $0.45 per share compared to the prior $1.75 offer price by that of Shandong. The price represents a 66% premium to the current average trading price of the equity, and a 26% premium to the prior offer price.

Shareholders will also be happy to hear that due to the offer being executed way of assignment, Shandong is effectively assigning their prior arrangement to that of Agnico. What this means for shareholders, is that the approval process does not need to be restarted from a shareholder perspective, with the company utilizing the prior shareholder meeting to demonstrate 97.08% approval of the transaction, thus shortening the time to closing. A final order will be sought by the company via the Ontario Superior Court of Justice on January 20, 2021, with the overll goal of trying to close the transaction before February 8, 2021.

As per the news release this morning, the total equity value in the transaction is approximately $286.6 million, with Agnico to also retire TMAC’s outstanding debt and deferred interest and fees.

TMAC Resources last traded at $1.57 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

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

SSR Mining Q1 Earnings: Costs Continue To Climb

Recommended

PTX Metals Hits 235.1 Metres Of Copper, Nickel Mineralization In Longest Intercept To Date At W2

Riverside Resources Spins Out Blue Jay Gold Corp

Related News

Pistol Bay Acquires Icefields Gold Property, Featuring Historic Drilling of 59.03 G/T Gold, 7,530 G/T Silver Over 4.04 Metres

Pistol Bay Mining (TSXV: PST) this morning announced that it has entered into a letter...

Thursday, September 10, 2020, 08:56:59 AM

Maritime Resources Repurchases Half Of Hammerdown Royalty At Discount

Maritime Resources (TSXV: MAE) this morning announced that it has reduced its future operating costs...

Thursday, September 17, 2020, 08:20:29 AM

Canaccord: “Gold’s Ready For Liftoff”

On Monday, Canaccord put out a precious metals industry update, saying, “The war in Ukraine...

Wednesday, March 9, 2022, 05:08:00 PM

Massive Gold Deal: Northern Star Secures Hemi Project in $3.3 Billion Acquisition

Northern Star Resources Ltd. (ASX: NST), Australia’s largest listed gold miner, has announced a $3.3 billion...

Monday, December 2, 2024, 08:01:00 AM

Monterey Minerals Signs Definitive Agreement For High Grade Gold Alicia Project

Monterey Minerals (CSE: MREY) announced this morning that it has signed a definitive agreement to...

Friday, May 22, 2020, 09:06:09 AM