Canadian gold miner Agnico Eagle Mines Ltd. AEM-T -3.06%decrease is bulking up considerably in northern Finland by unveiling three acquisitions worth roughly $3.8-billion.
Toronto-based Agnico on Monday announced it has reached agreements to buy Rupert Resources Ltd. RUP-T +64.16%increase for up to $2.9-billion in stock and cash, Aurion Resources Ltd. AU-X +43.82%increase for $481-million in cash, and B2Gold Corp.’s BTO-T -1.31%decrease 70-per-cent stake in Fingold Ventures Ltd. for US$325-million.
By buying all three, Angico will consolidate its presence in Lapland. The company’s Kittilä mine has been in operation since 2009 and is one of the biggest gold operations in Europe. Kittilä is located 150 kilometres north of the Arctic Circle.
Under the agreement, Toronto-based Rupert’s shareholders will receive a mix of Agnico shares and up to $3 in cash payable over 10 years for each of their securities. The cash portion will be paid out depending on the company’s minerals projects hitting certain milestones. The offer equates to a 67-per-cent premium to Rupert’s closing price on Friday. Rupert’s flagship project is Ikkari in northern Finland. Production at the site is targeted for 2030, and the mine is expected to have a 20-year life.
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The acquisition of St. John’s-based Aurion Resources will see Agnico take ownership of several exploration projects held by the company in Lapland, including its 100-per-cent owned Risti property and its 30-per-cent stake in Fingold.
By buying B2’s stake in Fingold, Agnico will control 100 per cent of the project.
Agnico is Canada’s biggest gold company by market value and the second biggest globally after Colorado-based Newmont Corp.
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