Agnico Eagle Reiterates Offer to Acquire Alexandria Minerals.
M2 EQUITYBITES-June 25, 2019-Agnico Eagle Reiterates Offer to Acquire Alexandria Minerals
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25 June 2019 - Canadian miner Agnico Eagle Mines Ltd. (NYSE: AEM) (TSX: AEM) has reiterated its previously reported offer for all the shares of Alexandria Minerals Corp. at CDN 0.05 per share in cash or shares represents a substantial premium to the offer by Chantrell Ventures Corp. to be considered at a meeting of Alexandria shareholders scheduled to be held on June 28, 2019, the company said.
The board of directors of Alexandria has determined that the Agnico Proposal constitutes a "superior proposal" under the terms of the arrangement agreement dated May 14, 2019 between Alexandria and Chantrell, entitling Alexandria to terminate the Chantrell Agreement if Chantrell does not match the Agnico Proposal.
Total consideration required to effect the acquisition is expected to be approximately CDN 26m (USD 19.44m), (which has been calculated based on CDN 0.05 per issued and outstanding Alexandria share).
The proposal is not subject to any financing or due diligence condition.
Agnico Eagle has been informed that Alexandria's board of directors has determined that the Proposal constitutes a "superior proposal" as defined in the arrangement agreement dated May 14, 2019 between Alexandria and Chantrell Ventures Corp.
The acquisition of Alexandria will allow Agnico Eagle to consolidate an additional 14,819 hectares of mining claims that cover approximately 35 kilometres of strike length along the Cadillac-Larder Lake break in the prospective Val d'Or gold camp.
Three of Alexandria's properties (Orenada, Akasaba and Sleepy) collectively contain historical inferred mineral resources of 526,702 ounces of gold (4.6m tons at 3.53 grams per ton gold) and indicated mineral resources of 448,654 ounces of gold (7.4 m tons at 1.88 grams per ton gold), each as estimated by Alexandria.
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957.
Its operating mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these countries as well as in the United States and Sweden.
Agnico Eagle and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Jun 25, 2019|
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