Agnicio Eagle Mines to Combine with Kirkland Lake Gold
Sep 28, 2021 By MarketDepth
Canada’s Agnico Eagle Mines Ltd (TSX: AEM) has agreed to a merger of equals with Kirkland Lake Gold Ltd. (NYSE: KL) in a transaction valued at around $13.4 billion (US$10.6 billion).
The shares of both Canadian miners fell.
Highest Quality Senior Producer
The merger is intended to establish the new Agnico Eagle as the industry’s highest-quality senior producer. It also aims to attain the lowest unit costs, highest margins, most favourable risk profile and industry-leading best practices in key areas of environmental, social and governance. Investors will receive 0.7935 of an Agnico share for each Kirkland share held, the companies announced in the Tuesday statement.
The merged company will continue to use Agnico’s name and create a combined board and management team, drawing from both companies’ current personnel.
Low Production Costs
Sean Boyd, Agnico Eagle’s Chief Executive Officer stated, “This merger starts a new chapter in Agnico Eagle’s 64-year history and creates the leading low risk global gold company with growing production, low costs and strong ESG leadership…Over time, we believe that the gold industry will continue to evolve and consolidate and with this transaction we are well positioned take advantage of high-quality opportunities and be a true Canadian mining champion.”