Probe Gold To Be Acquired For $3.65 A Share By Fresnillo

M&A activity is back on the table within the mining sector following a brief lull in the market. Probe Gold (TSX: PRB) is the latest name to be targeted for acquisition, although it has an unexpected acquirer: Fresnillo.

The latest arrangement will see Fresnillo, who is the world’s largest primary silver producer and the largest gold producer in Mexico, step outside it’s normal operating region in an attempt to diversify it’s portfolio. The company currently has eight operating mines in Mexico, alongside exploration assets in Mexico, Peru and Chile, making the acquisition of Probe and it’s Canadian assets an oddity in terms of its operating history.

The transaction will see Probe acquired under all-cash terms, with Probe shareholders set to receive $3.65 per share, valuing the company as a whole at approximately $780 million. The figure represents a 39% premium to Thursday’s close, and a 26% premium based on the twenty day volume weighted average price of Probe.

Management of Probe, alongside major investor Eldorado Gold, have entered into voting support arrangements for the transaction, which collectively represents 12% of the outstanding shares. A break fee of $31 million meanwhile is in play in connection with the definitive agreement.

“After nine years of steady progress advancing the Novador project, we believe this is an opportune moment to transfer the project to an experienced operator with the expertise to advance it through permitting and into construction. Fresnillo is a leading operator in the precious metals industry with the financial strength, technical expertise and shared commitment to responsible and collaborative development,” commented Probe CEO David Palmer.

The transaction is currently set to close in Q1 2026.

Probe Gold last traded at $2.63 on the TSX.

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