https://www.miningweekly.com

Chantrell has until Thursday to match Agnico’s offer for Alexandria

24th June 2019

By: Creamer Media Reporter

     

Font size: - +

Toronto-headquartered Chantrell Ventures has until 23:59 on Thursday to amend its offer for junior gold miner and explorer Alexandria Minerals to match that of NYSE- and TSX-listed Agnico Eagle Mines.

The board of directors of Alexandria has determined that the Agnico offer – announced nearly two weeks ago – constitutes a superior proposal than that of Chantrell and that it is entitled to terminate the agreement if it is not matched.

Agnico said on Monday that it had voted all the common shares that it owned of Alexandria – about 28.8-million, representing 5.6% of the company – against the Chantrell offer.

In addition, Agnico Eagle said it planned to exercise its dissent rights with respect to the Chantrell offer.  Assuming the inferior Chantrell offer was either voted down by Alexandria shareholders, or terminated prior to the Alexandria shareholders meeting, Agnico Eagle would proceed with its superior offer.

The Agnico proposal provides each Alexandria shareholder with the option to receive, for each Alexandria share, either C$0.05 in cash, 0.000819355 common shares of Agnico plus C$0.000001 in cash or 0.000819355 Agnico shares.

Based on the cash option, the Agnico proposal was a premium of 25% to the implied value of C$0.04 a Alexandria share under the Chantrell agreement; 43% to the unaffected Alexandria share price on May 13, the last trading day prior to the public announcement of the Chantrell agreement; and 60% to the market value valuation of the Chantrell offer based on the 20-day volume weighted average price of Alexandria shares on the last trading day prior to the public announcement of the Agnico proposal.

Under the Chantrell proposal, Alexandria is to be acquired by a Chantrell/Osisko Mining reverse takeover vehicle and is to be renamed O3 Mining.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION