Companies seek to find operational, exploration synergies in Abitibi gold camp of northeastern Ontario, western Quebec
Agnico Eagle and Kirkland Lake Gold are merging to create a Canadian and global mining powerhouse.
The gold mining companies are framing this proposed $13.4-billion all-share acquisition by Agnico Eagle as creating a “merger of equals” to establish a “best-in-class gold mining company” built around each other’s mining assets and the considerable exploration potential in the historic and fertile Abitibi Greenstone Belt in northeastern Ontario and northwestern Quebec.
Under the proposed new name of Agnico Eagle Mines Limited, the combined company will operate 12 mines in four countries, grouping Agnico’s assets in Canada, Finland and Mexico with Kirkland Lake Gold’s operation in Australia.
When the transaction closes in either December or the first quarter of 2022, Agnico Eagle and Kirkland Lake Gold shareholders will own 54 per cent and 46 per cent of the combined company, respectively. The new company will have $2.3 billion in liquidity with a combined mineral reserve base of 48 million ounces of gold, expected year-end production of 3.4 million, and a treasury of $2.3 billion in available liquidity.