When TMAC Resources announced in January 2020 that it was prepared to sell its assets to a larger company, only China’s Shandong Gold Mining stepped forward with a bid.
After the federal government rejected that deal in December, Toronto-headquartered Agnico Eagle announced it was making an offer 20 per cent higher than Shandong did – $286.6 million compared to $230 million.
Agnico Eagle’s appetite to acquire the oft-troubled Hope Bay project at a premium are multifold, according to CEO Sean Boyd.
TMAC made a number of operational improvements at the Doris gold mine over the past year, boosting efficiencies and generating cash, said Boyd. That drove up the value of the property and, consequently, Agnico Eagle’s bid, he explained.
Another factor was that, when TMAC went up for sale a year ago, Agnico Eagle was focused on resolving start-up challenges on the ground at its Meliadine gold mine and Amaruq gold deposit in the Kivalliq.
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