NYSE- and TSX-listed gold mining company Agnico Eagle Mines and Canadian mining company TMAC Resources have entered into agreements whereby Agnico will acquire all of the outstanding common shares of TMAC at C$2.20 apiece in cash.
This represents an increase of C$0.45 apiece on the price of C$1.75 offered by Shandong Gold Mining.
The Canadian government last month opted not to approve Shandong's buyout offer for TMAC following a national security review.
The total equity value of the transaction is about C$286.6-million.
In addition, in connection with the closing of the transaction, Agnico will retire TMAC’s outstanding debt and deferred interest and fees.
Agnico vice-chairperson and CEO Sean Boyd says the company welcomes the opportunity to bring its extensive northern operational and community experience to the Hope Bay mine and the Kitikmeot region of Nunavut, Canada.
“Together with the TMAC team and our Nunavut partners, we look forward to advancing exploration and expansion initiatives to realise the full potential of the mine and its large unexplored land package.”
TMAC president and CEO Jason Neal says TMAC spent almost the entirety of 2020 under the uncertainty of a strategic review process and the Canadian government review of the sale to Shandong, with an impending debt maturity, compounded by the anxiety of the global pandemic.
“Our employees showed great focus that delivered outstanding results. The Nunavut communities showed great patience. Sprott Lending provided accommodation and support. The acquisition being completed by Agnico is a great outcome for all stakeholders.”
He says Agnico is one of the strongest gold producers internationally, a “Canadian champion” and has been operating in Nunavut for more than a decade with a great record with communities, employees and the environment.
Resource Capital Funds, Newmont Corporation, Shandong and all directors and officers of TMAC, collectively holding about 62.3% of the current outstanding TMAC common shares, have entered into agreements with Agnico that include obligations to, among other matters, cooperate in seeking the Agnico final order and not solicit competing transactions or take actions that would interfere with the completion of the transaction.