Agnico Eagle Mines Limited acquires TMAC Resources Inc. (Hope Bay)

Agnico Eagle Mines Limited acquired TMAC Resources Inc. (Hope Bay) for ~C$286.6 million (C$2.20 per share cash; plus retirement of TMAC debt).

Agnico Eagle agreed to acquire all of TMAC Resources for C$2.20 per share in cash, a total equity value of about C$286.6 million, after the Canadian government blocked TMAC's earlier proposed sale to China's Shandong Gold on national-security grounds. Agnico stepped in by taking assignment of the existing arrangement agreement at a raised price (a ~26% premium to Shandong's C$1.75). TMAC owned the Hope Bay gold operation in Nunavut's Kitikmeot region. Agnico also agreed to retire TMAC's outstanding debt; the deal closed in early February 2021.

The purchase let Agnico apply its northern operating and community expertise to a producing but underperforming Arctic mine with a large, underexplored land package, reinforcing its position as the leading gold producer in Nunavut.

We are very pleased to have the opportunity to bring our extensive northern operational and community experience to the Hope Bay Mine and the Kitikmeot Region of Nunavut. Together with the TMAC team and our Nunavut partners, we look forward to advancing exploration and expansion initiatives to realize the full potential of the Mine and its large unexplored land package.

Advisory firms were not disclosed for this transaction.

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