The company has agreed to pay C$2.20 ($1.74) per share in cash for TMAC, compared to the offer price of C$1.75 made by Shandong
TMAC holds 100% stake in the Hope Bay Property in Canada. (Credit: Khusen Rustamov from Pixabay.)
Canadian gold mining company Agnico Eagle Mines has signed agreements to acquire TMAC Resources for approximately C$286.6m ($225.16m).
The company has reached agreements with Resource Capital Funds (RCF), Newmont Corporation, Shandong and all TMAC directors and officers, who collectively hold nearly 62.3% of TMAC’s current outstanding common shares.
For the deal, Agnico Eagle has agreed to pay C$2.20 ($1.74) per share in cash for TMAC, which holds 100% stake in the Hope Bay Property.
The price represents a 26% of premium to the offer price of C$1.75 per share made by Shandong Gold.
Agnico Eagle to retire TMAC’s outstanding debt
With respect to the closing of the deal, Agnico Eagle is expected to retire TMAC’s outstanding debt and deferred interest and fees.
Agnico Eagle vice-chairman and CEO Sean Boyd said: “We are very pleased to have the opportunity to bring our extensive northern operational and community experience to the Hope Bay Mine and the Kitikmeot Region of Nunavut.
“Together with the TMAC team and our Nunavut partners, we look forward to advancing exploration and expansion initiatives to realize the full potential of the Mine and its large unexplored land package.”
The deal is expected to be closed on or before 8 February this year.
Located in Nunavut, Canada, the Hope Bay property has been explored by BHP, Miramar, Newmont and TMAC over a period spanning more than 30 years.
In early 2017, TMAC started producing gold from Doris, its first mine at Hope Bay. The company processed gold at the Doris processing plant, which saw its capacity expanded to 2,000tpd midway through 2018.
In September last year, Agnico Eagle Mines and Newmont have formed a 50-50 exploration joint venture to explore the Anza project in Colombia.