Agnico to take over Comaplex for Meliadine gold project

10 April 2010 | 04:26 Code : 19892 Geoscience events
Agnico-Eagle Mines (AEM.TO) has agreed to buy Comaplex Minerals’ (CMF.TO....

Agnico-Eagle Mines (AEM.TO) has agreed to buy Comaplex Minerals’ (CMF.TO) Meliadine gold property in northern Canada, which is located just 300 km (186 miles) from Agnico’s Meadowbank project, for about C$570 million ($564 million), the two companies said on Thursday.Agnico, a Toronto-based mid-tier gold miner, will acquire the asset in Nunavut through a friendly takeover of the 87 percent of Comaplex that it does not already own, followed by a spinoff of Comaplex’s remaining exploration assets into a separate subsidiary.Comaplex shareholders will receive 0.1576 of an Agnico share for each Comaplex share, as well as a share in the newly formed company.The total consideration per share for each Comaplex shareholder is estimated at C$10.32 a share, the companies said. That represents a 30 percent premium to the stock’s close on Thursday.Based on Agnico’s closing share price, it will pay about C$570 million for Meliadine.The project holds a measured and indicated gold resource of 3.29 million ounces and inferred resources of 1.73 million ounces. Agnico said it will accelerate underground exploration at the property with an eye to converting the resource into reserves in the next two years.Agnico’s Meadowbank project poured its first gold about a month ago and is the fifth new mine to be opened by Agnico in the past two years.

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