Photo by: Reuters
TORONTO (miningweekly.com) – Having earlier this year bagged midtier gold miner Osisko Gold in a C$3.9-billion friendly takeover with joint venture partner Yamana Gold, Canadian gold miner Agnico Eagle was on Monday at it again, agreeing to buy Mexico-focused explorer Cayden Resources for C$205-million in cash and scrip.
The NYSE- and TSX-listed Agnico, which operates mines in Canada and Mexico, explained that it would pay Cayden shareholders C$3.79 a share. This represented premiums of 42.5% over the volume weighted average price of Cayden shares on the TSX-V for the 30-day period and 51.9% over the 60-day period, respectively, both ended on Friday.
Cayden shareholders would receive 0.09 of an Agnico Eagle share and C$0.01 for each Cayden common share held.
Cayden owns a 100% interest in the El Barqueňo property, which covered about 41 000 ha in the Guachinango gold district, in Jalisco state, Mexico. El Barqueňo hosted a significant epithermal bonanza-type gold vein and disseminated stockwork system. Drilling and trenching in an area about 13.5 km long by 4.7 km wide had identified several gold-bearing zones.
Cayden also owns a 100% interest in the Morelos Sur property, which covers about 13 000 ha in the Guerrero gold belt, in Guerrero state. Morelos Sur consisted of three properties (La Magnetita, Tenantla and Las Calles), and exploration by Cayden had outlined a 25 km2 gold soil anomaly at La Magnetita and Tenantla.
Pending shareholder and regulatory approvals, the friendly transaction was expected to close before the end of the year.
Cayden's shares closed at C$2.95 apiece on the TSX-V on Monday, while Agnico shares shed 2.27% to close at C$37.08 apiece on the TSX.