A news release that you have missed over the Easter break from Agnico-Eagle Mines Limited (AEM) regarding the acquisition of another high grade property which currently has 3.29 million ounces of measured and indicated gold resources.
April 1 /CNW/ - Agnico-Eagle Mines Limited ("Agnico-Eagle") and Comaplex Minerals Corp. ("Comaplex") jointly announced that they have reached an agreement in principle whereby Agnico-Eagle will acquire all of the shares of Comaplex that it does not already own. Under the terms of the transaction, each shareholder of Comaplex will receive 0.1576 of an Agnico-Eagle share per Comaplex share. Additionally, at closing, each Comaplex shareholder other than Agnico-Eagle and Perfora Investments S.a.r.l. ("Perfora") will receive one common share of a newly formed, wholly-owned, subsidiary of Comaplex ("New Comaplex") in respect of each Comaplex share. The total value of the consideration received by Comaplex shareholders, other than Agnico-Eagle and Perfora, is estimated to be C$10.32 per Comaplex share (as described below), which represents a premium of approximately 34% to the 20-day volume weighted average price of Comaplex shares on the Toronto Stock Exchange on March 31, 2010.
Comaplex owns a 100% interest in the advanced stage Meliadine gold project located in Nunavut, Canada which is approximately 300 kilometres from Agnico-Eagle's producing Meadowbank gold mine. First discovered in 1990, Meliadine currently has 3.29 million ounces of measured and indicated gold resources from 12,947,500 tonnes grading 7.9 grams per tonne (g/t) and inferred gold resources of 1.73 million ounces from 8,385,600 tonnes grading 6.4 g/t.
"Upon completion of the proposed transaction, the addition of the large, high grade Meliadine property is consistent with our steady, focused approach to per share growth. In addition, on the back of a successful start up of our Meadowbank gold mine this quarter, the Meliadine property is a perfect fit with our Arctic skill set and the transaction solidifies our commitment to Nunavut and our foundation in Canada" said Sean Boyd, Vice-Chairman and CEO of Agnico-Eagle. "Our operating focus remains on the optimization of our newly built gold mines and on completing several internal expansion studies that are currently underway. At Meliadine, our plan would be to accelerate an underground exploration program focused on expanding the resource and converting the large resource into reserves over the next two years. We hope to initiate a feasibility study prior to the end of 2011" added Mr. Boyd.
George Fink, President and CEO of Comaplex said "We are pleased to enter into this arrangement with Agnico-Eagle, although it is difficult to relinquish the interest in the Meliadine property after all these years. Meliadine is an excellent asset with tremendous exploration potential that fits well with Agnico-Eagle's portfolio of properties and our shareholders will continue to benefit from it through their holding of Agnico-Eagle shares. We will miss the close relationship we have had with the people of Nunavut and wish to thank them for the tremendous support they have given us over the years. New Comaplex will be a very well financed exploration company with cash flow, that will be run by experienced staff and proven management."
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Agnico-Eagle Mines Limited trades on the NYSE under the ticker symbol of AEM and on the Toronto Stock Exchange under the symbol of AEM.TO.
The company has a market capitalization of $9.15 billion, a 52 week price range of $42.65 to $74.00 and a P/E ratio of 107 on an average volume of 1.9m to 2.66m shares traded.
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