Agnico Eagle and Kirkland Lake Gold to merge

(Toronto) Gold mining companies Agnico Eagle Mines and Kirkland Lake Gold said Tuesday they have agreed to merge.

Posted Sep 28, 2021

Under the agreement, Kirkland Lake Gold shareholders save 0.7935 common shares of Agnico Eagle for each common share of Kirkland Lake Gold they hold.

Current Agnico Eagle shareholders will own 54% of the combined company, while Kirkland Lake Gold shareholders will own 46%.

The new company, which will retain the Agnico Eagle name, will be led by a combined board of directors and management team, including seven directors from Agnico Eagle and six from Kirkland Lake Gold.

Agnico Eagle CEO Sean Boyd will become executive chairman of the board, while Kirkland Lake Gold CEO Tony Makuch will become CEO of the combined company.

“The transaction creates a company with a strong platform of people, assets and financial resources to continue to build and operate a long-term, sustainable, self-financing business,” Boyd said in a statement.

“Kirkland Lake is an excellent partner for Agnico Eagle on the cultivation front, and we look forward to working together to further grow our business through exploration, mine development and the optimization of our high quality asset base. »

Mr. Makuch noted that the deal creates an industry leader.

“The businesses of both companies will benefit from the significant financial strength of the combined company, the broad pipeline of development and exploration projects to fuel future growth, and the potential to realize significant operational and strategic synergies along the corridor between Abitibi and Kirkland Lake,” said Mr. Makuch.

The transaction is subject to approval by a two-thirds majority vote of Kirkland Lake Gold shareholders and simple majority vote of Agnico Eagle shareholders.

The transaction is expected to close in December or the first quarter of 2022, the two companies said in a statement.

Agnico Eagle has mines in Canada, Finland and Mexico, and exploration and development activities in these countries, as well as in the United States and Colombia.

Kirkland Lake Gold owns the Macassa and Detour Lake mines, both in northern Ontario, and the Fosterville mine in Australia.

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