Agnico Eagle Acquires Cayden Resources Inc.
Agnico Eagle Mines Limited (AEM) announced it now has acquired 100% of Cayden Resources Inc shares after a proposed takeover arrangement was approved by the British Columbia Supreme Court and the Mexican government's anti-trust unit.
Cayden Resources is now a wholly-owned subsidiary of Agnico Eagle.
As a result, Cayden's common shares will be delisted from the TSX Venture Exchange and Agnico Eagle will apply to the relevant securities commissions for Cayden to cease to be a reporting issuer under Canadian securities laws.
"Cayden's management did a commendable job of creating shareholder value through its portfolio of Mexican properties. With the acquisition of Cayden now completed, Agnico Eagle looks forward to further advancing the El Barqueno gold project through focused exploration," said Sean Boyd, President and Chief Executive Officer of Agnico Eagle. "A $15 million exploration program is anticipated in 2015 with the intent of delineating an initial resource estimate to further enhance shareholder value," added Mr. Boyd.
Cayden owns, has options to acquire or has staked, concessions constituting a 100% interest in the El Barqueno Property, which covers approximately 41,000 hectares in the Guachinango gold district in Jalisco State, Mexico. El Barqueno hosts a significant epithermal bonanza type gold vein and disseminated stockwork system. Several gold bearing zones have been identified by drilling and trenching in an area approximately 13.5 km long by 4.7 km wide.
Cayden also owns a 100% interest in the Morelos Sur Property, which covers approximately 13,000 hectares in the Guerrero gold belt in Guerrero State, Mexico. Morelos Sur consists of three properties (La Magnetita, Tenantla and Las Calles), and exploration by Cayden has outlined a 25 km2 gold soil anomaly at La Magnetita, and Tenantla.
- See more at: http://ir.agnicoeagle.com/English/investor-relations/news-releases/news-release-details/2014/Agnico-Eagle-to-Acquire-Cayden-Resources/default.aspx#sthash.7pMv8ITF.dpufFormer Cayden President and CEO, Ivan Bebek commented "I would like to thank the entire Cayden team for their efforts which resulted in the favorable transaction. On behalf of the company, I would like to thank all of our shareholders who financed and supported us since the inception of Cayden and congratulate Agnico Eagle on the acquisition of Cayden and its robust projects."
The Arrangement
Under the Arrangement, each Cayden common share was exchanged for 0.09 of an Agnico Eagle share and C$0.01 in cash.
Full details of the Arrangement and certain other matters are set out in the management information circular of Cayden dated September 26, 2014 (the "Information Circular"). A copy of the Information Circular can be found under Cayden's profile on SEDAR at www.sedar.com.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its nine mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these regions as well as in the United States. Its flagship mine is LaRonde in Abitibi region of northwestern Quebec. LaRonde has produced 4.4 million ounces of gold since it opened in 1988. Last year, Agnico Eagle purchased the Malatric Mine as in Northwestern Quebe in partnership with Yamana Gold from Osisko Gold.
The Company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983.
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