Agnico Eagle Mines Ltd. has swept in as TMAC Resources Inc.’s new takeover partner just a few weeks after that miner’s proposed sale to China’s Shandong Gold Mining Co. was blocked by the federal government.
Under the terms of the agreement announced Tuesday, Agnico will buy TMAC for $2.20 per share, compared to the $1.75 that Shandong had agreed to pay. As well, TMAC and Agnico said their arrangement will be implemented without requiring a new meeting of shareholders, who had previously voted 97.08 per cent in favour of the Shandong deal.
When TMAC revealed last May that it agreed to be purchased by Shandong, it was framed as an opportunity to bring the necessary financial heft to fully develop TMAC’s sprawling Hope Bay gold mine property in Nunavut.
However, it sparked some concern about China’s access to key metals and its presence in Canada’s far north.
Now, TMAC is turning to an experienced operator in Nunavut, given Agnico’s ownership of the Meadowbank and Meliadine gold mines in the northern Canadian territory.
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