Canada's Agnico Eagle to buy Kirkland Lake Gold in near $11 billion stock deal

FILE PHOTO: A visitor speaks with a representative of Agnico Eagle Mines Ltd at the Prospectors and Developers Association of Canada (PDAC) annual conference in Toronto, Ontario, Canada March 1, 2020. REUTERS/Chris Helgren

(Reuters) – Canada’s Agnico Eagle Mines Ltd is buying rival Kirkland Lake Gold Ltd in a stock deal valued at C$13.51 billion ($10.68 billion).

Kirkland Lake Gold shareholders will receive 0.7935 of an Agnico Eagle common share for each stock they hold, the two companies said on Tuesday. The deal values each Kirkland share at C$50.63, or a discount of 9% to the stock’s Monday close, according to Reuters’ calculation.

Upon closing of the merger, Agnico is expected to have $2.3 billion of available liquidity, a mineral reserve base of 48 million ounces of gold (969 million tonnes at 1.53 grams per tonne) and a pipeline of development and exploration projects.

Agnico Eagle shareholders will own about 54% of the combined company, while those of Kirkland Lake will have a 46% ownership.

($1 = 1.2652 Canadian dollars)

Source: Read Full Article