(All amounts expressed in U.S. dollars unless otherwise noted)
TORONTO, Sept. 28, 2021 /CNW/ – Agnico Eagle Mines Limited (TSX: AEM) (NYSE: AEM) (“Agnico Eagle” or the “Company”) and Kirkland Lake Gold Ltd. (TSX: KL) (NYSE: KL) (ASX: KLA) (“Kirkland Lake Gold”) announced today that they have entered into an agreement (the “Merger Agreement”) to combine in a merger of equals (the “Merger”), with the combined company to continue under the name “Agnico Eagle Mines Limited”.
The Merger will establish the new Agnico Eagle as the gold industry’s highest-quality senior producer, with the lowest unit costs, highest margins, most favourable risk profile and industry-leading best practices in key areas of environmental, social and governance (“ESG”).
Upon closing of the Merger, the Company is expected to have $2.3 billion of available liquidity, a mineral reserve base of 48 million ounces of gold, (969 million tonnes at 1.53 grams per tonne), which has doubled over the last 10 years, and an extensive pipeline of development and exploration projects to drive sustainable, low-risk growth.
The Merger will create a best-in-class gold mining company operating in one of the world’s leading gold regions, the Abitibi-Greenstone Belt of northeastern Ontario and northwestern Quebec (the “Abitibi”), with superior financial and operating metrics.
Consolidation within the Abitibi will also provide the new Agnico Eagle with significant value creation opportunities through synergies and other business improvement initiatives. Additionally, the Company is established uniquely as the only gold producer in Nunavut and well positioned internationally with profitable and prospective assets in Australia, Finland, and Mexico.
The combination of Agnico Eagle and Kirkland Lake Gold combines each company’s strengths by bringing together two industry leaders in growing per share value in key metrics such as production, mineral reserves, cash flow and net asset value. Both companies also share a strong commitment to returning capital to shareholders, with a total of $1.6 billion being returned through dividend payments and share repurchases since the beginning of 2020 (on a pro forma basis).
Under the Merger Agreement, which the Board of Directors of both companies have unanimously approved, the new Agnico Eagle will be led by a combined board and management team of experienced mining and business leaders, bringing together the proven cultures, strengths and capabilities of both companies. The transaction is expected to close in December 2021 or in the first quarter of 2022.
For the rest of this news release: https://finance.yahoo.com/news/agnico-eagle-kirkland-lake-gold-103000265.html