Agnico-Eagle Mines to acquire Comaplex Minerals for $564 million

Canadian gold mining company Agnico-Eagle Mines Ltd yesterday agreed to acquire all outstanding shares in its joint venture Comaplex Minerals Corporation, for $564 million.

Calgary, Canada-based Comaplex is a junior partner in the company that explores for precious and base metals. Its main asset is the advanced stage Meliadine gold project in Nunavut, which is located about 300 km from Agnico-Eagle's gold mine Meadowbank.

Under the friendly takeover, Toronto-based Agnico will acquire 87 per cent of Comaplex that it does not already own in Agnico, and spin off all the exploration assets, except the Meliadine gold project, into a separate subsidiary.

Comaplex shareholders will receive 0.1576 of an Agnico share for each Comaplex share, as well as one common share in the newly formed company.

The total value of the consideration received by Comaplex shareholders is estimated to be C$10.32 per Comaplex, a premium of 34 per cent to the stock's closing price on 31 March.

"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.

Toronto-based Agnico-Eagle is a gold producer with operations in Canada, Finland and Mexico and exploration and development activities in Canada, Finland, Mexico and the US.

Agnico-Eagle's LaRonde Mine is Canada's largest operating gold mine in terms of reserves. The company has paid a cash dividend for 28 consecutive years.