Agnico Eagle Mines Limited has entered into a merger agreement with Kirkland Gold Lake Ltd to create a best-in-class gold mining company. The combined entity will operate under the name ‘Agnico Eagle Mines Limited’. The transaction is expected to during Q4 this year or during the March quarter next year.
Upon closing of the merger deal, the combined entity is expected to have $2.3 billion of available liquidity, a mineral reserve base of 48 Moz of gold, in addition to an extensive pipeline of development and exploration projects. The combined production of the two companies is estimated at around 3.4 Moz.
The joint statement issued by the companies noted that the merger will create a high-quality gold producer in the Abitibi-Greenstone Belt of north-eastern Ontario and north-western Quebec- one of the world’s leading gold regions. The synergies of the companies, coupled with other business improvement initiatives will create significant value creation opportunities.
Upon closing of the merger transaction, the existing Agnico Eagle and Kirkland Lake Gold shareholders will own 54% and 46% of the combined entity, respectively.
The new entity will be led by a combined board and management team.
Source By – ScrapMonster