Agnico Eagle acquires O3 Mining in $204M deal
Agnico Eagle Mines Limited has announced a definitive agreement to acquire O3 Mining Inc. through a cash offer of $1.67 per share, valuing the transaction at approximately $204 million on a fully diluted basis. This represents a 57% premium to O3 Mining’s 20-day volume-weighted average price, as of December 11, 2024.
Strategic Asset Acquisition
O3 Mining’s primary asset, the 100%-owned Marban Alliance property, is located near Val-d’Or, Quebec, and adjacent to Agnico Eagle’s Canadian Malartic complex. The Marban deposit, an advanced exploration project, has estimated resources of 1.7 million ounces of gold in the Indicated category and 32,000 ounces in the Inferred category.
Agnico Eagle plans to integrate Marban into its Canadian Malartic land package, leveraging shared infrastructure, workforce, and operational expertise to realize cost and production synergies.
“This transaction is a natural fit for our regional strategy,” said Ammar Al-Joundi, CEO of Agnico Eagle. “The Marban deposit complements other ‘Fill-the-Mill’ opportunities at Canadian Malartic, enhancing our production profile at this world-class operation.”
Validation for O3 Mining
O3 Mining CEO José Vizquerra expressed enthusiasm about the deal:
“This all-cash offer delivers significant value for our shareholders and validates years of effort in advancing the Marban Alliance project. Agnico Eagle’s operational expertise and financial resources make it well-suited to develop the project responsibly while maximizing its potential.”
Board and Shareholder Support
O3 Mining’s Board of Directors unanimously supports the offer, backed by fairness opinions from Fort Capital Partners and Maxit Capital LP. Key shareholders representing approximately 22% of outstanding shares, including directors, officers, and certain institutional investors, have signed lock-up agreements to tender their shares.
Transaction Details
• Conditions: The offer requires at least two-thirds of the outstanding shares, excluding shares already owned by Agnico Eagle, to be tendered.
• Current Ownership: Agnico Eagle currently owns 0.8% of O3 Mining’s shares, with additional warrants and convertible debentures that could increase its stake to 5.3% on a partially diluted basis.
• Termination Fee: O3 Mining has agreed to a $10 million termination fee under specific circumstances, including accepting a superior proposal.
About the Marban Alliance Property
The Marban Alliance property’s proximity to Agnico Eagle’s operations positions it as a strategic addition to one of Canada’s most prolific gold districts. Agnico Eagle aims to capitalize on its expertise and infrastructure to optimize Marban’s potential, further solidifying its position in the Abitibi region.
Next Steps
Agnico Eagle’s offer is open for shareholder acceptance and will proceed upon meeting all regulatory and shareholder conditions.
Tags: Quebec / Deals & Financial / Gold / All Articles