Canadian gold miner Agnico-Eagle to buy Grayd Resource for C$275-mn
19 September 2011
Canadian gold miner Agnico-Eagle Mines is buying Mexico-focused gold explorer Grayd Resource Corp, for C$275-million in a cash-and-stock deal.
The Toronto-based gold producer will offer Grayd shareholders a combination of cash and shares valued at C$2.80 per Grayd share, a premium of 44 per cent to Grayd's closing price of $1.95 on 16 September on the Toronto Venture Exchange.
Grayd shareholders have the option to receive either C$2.80 in cash or 0.04039 of an Agnico-Eagle share and C$0.05 in cash.
Grayd owns a 100-per cent interest in the La India project located in the Mulatos Gold Belt of Sonora, Mexico. The project holds indicated gold resource of 26.8 million tonnes at a grade of 0.88 gram per tonne, and an inferred gold resource of 19.7 million tonnes at a grade of 0. gram per tonne.
Grayd recently discovered the Tarachi gold porphyry prospect located approximately 10kms north of the La India project. Both projects are located in 54,000 hectares exploration concessions.
"This acquisition is consistent with our long-term strategy of building value by bringing our mine development and exploration skills to promising early stage gold deposits and projects, said Sean Boyd, Vice-Chairman and CEO of Agnico-Eagle.
Agnico-Eagle is a low-cost gold producer having operations in Canada, Finland and Mexico and the US.