Agnico Eagle to Acquire O3 Mining in Friendly Transaction
Agnico Eagle Mines has announced a definitive agreement to acquire O3 Mining through an all-cash offer of $1.67 per share, representing a 58% premium to O3's closing price on December 11, 2024. The transaction, valued at approximately $204 million, has received unanimous recommendation from O3 Mining's Board and Special Committee, with support from shareholders representing 22% of outstanding shares.
The primary asset in this acquisition is O3 Mining's 100%-owned Marban Alliance property near Val d'Or, Quebec, adjacent to Agnico Eagle's Canadian Malartic complex. The Marban deposit contains indicated mineral resources of 52.4 million tonnes grading 1.03 g/t gold (1.7 million ounces) and inferred resources of 1.0 million tonnes grading 0.97 g/t gold (32,000 ounces).
Agnico Eagle Mines ha annunciato un accordo definitivo per acquisire O3 Mining tramite un'offerta interamente in contante di $1,67 per azione, che rappresenta un premio del 58% rispetto al prezzo di chiusura di O3 dell'11 dicembre 2024. L'operazione, valutata circa 204 milioni di dollari, ha ricevuto una raccomandazione unanime dal Consiglio e dal Comitato speciale di O3 Mining, con il supporto di azionisti che rappresentano il 22% delle azioni in circolazione.
L'asset principale di questa acquisizione è la proprietà Marban Alliance, di proprietà al 100% di O3 Mining, situata vicino a Val d'Or, Quebec, adiacente al complesso Canadian Malartic di Agnico Eagle. Il giacimento Marban contiene risorse minerarie indicate di 52,4 milioni di tonnellate con un grado di 1,03 g/t d'oro (1,7 milioni di once) e risorse inferite di 1,0 milione di tonnellate con un grado di 0,97 g/t d'oro (32.000 once).
Agnico Eagle Mines ha anunciado un acuerdo definitivo para adquirir O3 Mining a través de una oferta en efectivo de $1.67 por acción, lo que representa una prima del 58% sobre el precio de cierre de O3 el 11 de diciembre de 2024. La transacción, valorada en aproximadamente $204 millones, ha recibido la recomendación unánime de la Junta y del Comité Especial de O3 Mining, con el apoyo de accionistas que representan el 22% de las acciones en circulación.
El activo principal de esta adquisición es la propiedad Marban Alliance, de propiedad 100% de O3 Mining, situada cerca de Val d'Or, Quebec, junto al complejo Canadian Malartic de Agnico Eagle. El depósito Marban contiene recursos minerales indicados de 52.4 millones de toneladas con ley de 1.03 g/t de oro (1.7 millones de onzas) y recursos inferidos de 1.0 millón de toneladas con ley de 0.97 g/t de oro (32,000 onzas).
아그니코 이글 마인즈는 O3 Mining을 현금 전액으로 주당 $1.67에 인수하기로 한 최종 계약을 발표했습니다. 이는 2024년 12월 11일 O3의 종가에 비해 58%의 프리미엄을 나타냅니다. 약 2억 4천만 달러로 평가되는 이번 거래는 O3 Mining의 이사회와 특별위원회의 만장일치 추천을 받았으며, 발행 주식의 22%를 보유한 주주들의 지원을 받고 있습니다.
이번 인수의 주요 자산은 퀘벡 발 도르 근처에 위치한 Marban Alliance 소유지로, 아그니코 이글의 캐나다 말르틱 복합체와 인접해 있습니다. Marban 광상은 1.03g/t 금(170만 온스)의 등급을 가진 5240만 톤의 지표 자원을 포함하고 있으며, 0.97g/t 금(32,000 온스)의 등급을 가진 100만 톤의 추정 자원도 포함하고 있습니다.
Agnico Eagle Mines a annoncé un accord définitif pour acquérir O3 Mining par le biais d'une offre en espèces de 1,67 $ par action, représentant une prime de 58 % par rapport au prix de clôture d'O3 du 11 décembre 2024. La transaction, d'une valeur d'environ 204 millions de dollars, a reçu une recommandation unanime du Conseil d'administration et du Comité spécial d'O3 Mining, avec le soutien d'actionnaires représentant 22 % des actions en circulation.
L'actif principal de cette acquisition est la propriété Marban Alliance, détenue à 100 % par O3 Mining, située près de Val d'Or, au Québec, adjacente au complexe Canadian Malartic d'Agnico Eagle. Le dépôt Marban contient des ressources minérales indiquées de 52,4 millions de tonnes avec une teneur de 1,03 g/t d'or (1,7 million d'onces) et des ressources inférées de 1,0 million de tonnes avec une teneur de 0,97 g/t d'or (32 000 onces).
Agnico Eagle Mines hat eine endgültige Vereinbarung zur Übernahme von O3 Mining durch ein Barangebot von 1,67 $ pro Aktie bekannt gegeben, was einem Aufschlag von 58 % auf den Schlusskurs von O3 am 11. Dezember 2024 entspricht. Die Transaktion, die mit etwa 204 Millionen $ bewertet wird, erhielt eine einstimmige Empfehlung des Vorstands und des Sonderausschusses von O3 Mining, unterstützt von Aktionären, die 22 % der ausgegebenen Aktien vertreten.
Der Hauptaktiva dieser Übernahme ist das 100%-Eigentum von O3 Mining an der Marban Alliance-Liegenschaft in der Nähe von Val d'Or, Quebec, die an den Canadian Malartic-Komplex von Agnico Eagle angrenzt. Das Marban-Vorkommen enthält angezeigte mineralische Ressourcen von 52,4 Millionen Tonnen mit einem Gehalt von 1,03 g/t Gold (1,7 Millionen Unzen) und abgeleitete Ressourcen von 1,0 Million Tonnen mit einem Gehalt von 0,97 g/t Gold (32.000 Unzen).
- 58% premium offer price over market value
- Significant synergies through integration with existing Canadian Malartic operations
- Strategic acquisition of 1.7 million ounces of indicated gold resources
- Strong shareholder support with 22% already committed to tender
- Geographic proximity to existing operations enabling operational efficiency
- Substantial cash outlay of $204 million required for acquisition
- $10 million termination fee if deal fails under certain conditions
- All cash offer of
$1.67 58% premium to O3 Mining's closing price on December 11, 2024 - Offer unanimously recommended by Board and Special Committee of O3 Mining and supported by shareholders representing
22% of outstanding shares of O3 Mining
(All amounts expressed in Canadian dollars unless otherwise noted)
The Premium Cash Offer
The offer price of
O3 Mining's primary asset is its
The potential integration of the Marban Alliance property to the Canadian Malartic land package will create significant and unique synergies by leveraging Agnico Eagle's regional operational expertise and existing infrastructure, including the Canadian Malartic mill and existing open pit workforce and equipment fleet.
Agnico Eagle's President and Chief Executive Officer, Mr. Ammar Al-Joundi commented: "Consistent with our regional strategy, this transaction is a tuck-in of the Marban deposit to our Canadian Malartic complex. The Marban deposit is expected to be complementary to other "Fill-the-Mill" opportunities at Canadian Malartic, further improving the production profile at a long-life world class asset. Our extensive operation, exploration and community experience is expected to enhance the value generated from the Marban Alliance property and unlock further potential at our Abitibi platform. We are looking forward to working with our partners and all stakeholders in the region as we continue to advance this opportunity".
O3 Mining's President and Chief Executive Officer, Mr. José Vizquerra commented: "The all-cash offer at a significant premium to market is an excellent outcome for our shareholders and is validation of the efforts made by the O3 Mining team. Having diligently advanced the Marban Alliance project over the past five years, the timing is right for O3 Mining to sell to a more experienced operator that can efficiently navigate the project through permitting and construction. This represents a substantial non-dilutive alternative to shareholders. We believe Agnico Eagle is the gold standard in the precious metals space – it not only has the financial strength and the mining expertise to advance the Marban Alliance project, but shares our commitment to work in partnership with stakeholders in a socially responsible manner. Today's Offer represents a significant milestone for O3 Mining, and I would like to thank our employees, shareholders, First Nations partners, community partners and the Province of
Transaction Details
Agnico Eagle, through a wholly-owned subsidiary, Agnico Eagle Abitibi Acquisition Corp. (the "Offeror"), intends to formally commence the Offer by mailing a take-over bid circular to O3 Mining shareholders on or about December 19, 2024, and O3 Mining's directors' circular is also expected to be mailed to O3 Mining shareholders on or about that date. The Offer will be open for acceptance for a minimum of 35 days following the date of commencement. Accordingly, the Offer will be open for acceptance until 5:00 p.m. (
Special Committee and Board Recommendations
The Board of Directors of O3 Mining (the "Board"), having received a unanimous recommendation from a special committee comprised solely of independent directors of O3 Mining (the "Special Committee") and after receiving outside legal and financial advice, is recommending that O3 Mining shareholders tender their Common Shares and accept the Offer. The recommendation of the Board is supported by fairness opinions provided by Fort Capital Partners ("Fort Capital") to the Board and Special Committee and by Maxit Capital LP ("Maxit Capital") to the Board, each stating that the Offer is fair, from a financial point of view, to O3 Mining shareholders (other than Agnico Eagle and its affiliates).
Conditions
The Offer is conditional upon, among other conditions, there having been deposited pursuant to the Offer and not withdrawn at the expiry of the initial deposit period not less than two-thirds of the Common Shares then outstanding, excluding the Common Shares beneficially owned, or over which control or direction is exercised, by Agnico Eagle and any person acting jointly or in concert with Agnico Eagle. Agnico Eagle owns 906,238 Common Shares, representing approximately
Lock-Up Agreements
All directors and officers of O3 Mining, Extract Advisors LLC and certain Franklin Templeton managed funds (collectively representing approximately
The Definitive Agreement provides for, among other things, a non-solicitation covenant on the part of O3 Mining (subject to customary fiduciary-out provisions). The Definitive Agreement also provides the Offeror with a right to match any competing offer which the Board determines to be a superior proposal within the meaning of the Definitive Agreement. The Offeror is entitled to a termination payment of
Additional information regarding the Offer will be included in the Offeror's take-over bid circular and in O3 Mining's directors' circular, each of which is expected to be delivered to registered shareholders of O3 Mining on or about December 19, 2024. These materials, as well as the Definitive Agreement and the Lock-Up Agreements, will also be available under O3 Mining's profile on SEDAR+ (www.sedarplus.ca) and on O3 Mining's and Agnico Eagle's respective websites.
How to Tender Your Shares; Postal Strike
Only O3 Mining shareholders who tender their Common Shares will receive the cash consideration of
Shareholder type: | How do I tender my Common Shares to the |
Beneficial Most O3 Mining shareholders are beneficial | Contact your bank or your broker immediately and |
Registered You are a registered shareholder if you hold your | Contact Laurel Hill Advisory Group: |
In light of the Canada Post labour strike, shareholders are encouraged to stay up to date on the Offer by visiting: https://www.agnicoeagle.com/Offer-for-O3-Mining/default.aspx. Shareholders are also asked not to mail in any Letter of Transmittal or share certificates. Instead, shareholders may contact Laurel Hill Advisory Group.
Advisors
Edgehill Advisory Ltd. is acting as financial advisor to Agnico Eagle. Davies Ward Phillips & Vineberg LLP is acting as legal advisor to Agnico Eagle.
Maxit Capital is acting as financial advisor to O3 Mining. Bennett Jones LLP is acting as legal advisor to O3 Mining. Fort Capital is acting as financial advisor to the Special Committee. Cassels Brock & Blackwell LLP is acting as legal advisor to the Special Committee.
The Depositary and Information Agent for the Offer is Laurel Hill Advisory Group. If you have any questions or require assistance with tendering to the Offer, please contact Laurel Hill Advisory Group, by phone at 1-877-452-7187 or by e-mail at assistance@laurelhill.com.
About O3 Mining Inc.
O3 Mining Inc. is a gold explorer and mine developer in
Qualified Person
The scientific and technical content of this news release has been reviewed and approved by Mr. Louis Gariépy, P.Eng (OIQ #107538), VP Exploration of O3 Mining, who is a "qualified person" within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About Agnico Eagle Mines Limited
Agnico Eagle is a Canadian based and led senior gold mining company and the third largest gold producer in the world, producing precious metals from operations in
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation that is based on current expectations, estimates, projections, and interpretations about future events as at the date of this news release. Forward-looking information and statements are based on estimates of management by O3 Mining and Agnico Eagle, at the time they were made, and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information or statements. Forward-looking statements in this news release include, but are not limited to, statements regarding: the Offer, including the anticipated timing of commencement and expiration, mechanics, funding, completion, settlement, results and effects of the Offer; the anticipated timing of the delivery of the Offeror's take-over bid circular and O3 Mining's directors' circular; the reasons to accept the Offer; the value inherent in O3 Mining's portfolio of projects, including the Marban Alliance project; the ability for the Marban Alliance project to support an open pit mining operation; the expected outcomes of completion of the transaction, including the integration of the Marban Alliance property to the Canadian Malartic land package, synergies arising therefrom, improved production profile, enhanced value generated and unlocked further potential; and the other benefits of the transaction. Material factors or assumptions that were applied in formulating the forward-looking information contained herein include, without limitation, the expectations and beliefs of Agnico Eagle and O3 Mining that the Offer will be made in accordance with the Definitive Agreement and will be successful, that all required regulatory consents and approvals will be obtained and all other conditions to completion of the transaction will be satisfied or waived, and the ability to achieve goals, including the integration of the Marban Alliance property to the Canadian Malartic land package and the ability to realize synergies arising therefrom. Agnico Eagle and O3 Mining caution that the foregoing list of material factors and assumptions is not exhaustive. Although the forward-looking information contained in this news release is based upon what Agnico Eagle and O3 Mining believe, or believed at the time, to be reasonable expectations and assumptions, there is no assurance that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither O3 Mining, nor Agnico Eagle nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. O3 Mining and Agnico Eagle do not undertake, and assume no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by applicable law. These statements speak only as of the date of this news release. Nothing contained herein shall be deemed to be a forecast, projection or estimate of the future financial performance of Agnico Eagle or any of its affiliates or O3 Mining.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
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SOURCE O3 Mining Inc.
FAQ
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