Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, October 8, 2021

Article Excerpt

AGNICO EAGLE MINES LTD., $67.29, symbol AEM on Toronto, has eight gold mines: five in Canada (LaRonde, Meadowbank, Meliadine, Goldex and Malarctic), one in Finland (Kittila), and two in Mexico (Pinos Altos and La India). In addition, on February 2, 2021, the company completed the acquisition of Toronto-listed TMAC Resources Inc. for $226.0 million. TMAC owns and operates the Hope Bay mine in Hope Bay, Nunavut. The mine went into production in 2017. TMAC also holds exploration properties in the Kitikmeot region of Nunavut. Now, Agnico is making an even bigger acquisition. On September 28, 2021, Agnico announced it would acquire Kirkland Lake Gold Ltd. (symbol KL on Toronto) in an all-stock transaction valued at $13.5 billion. Kirkland Lake Gold shareholders will receive 0.7935 of an Agnico Eagle common share for each share they hold. Based on today’s price for Agnico Eagle shares, that values each Kirkland Lake Gold share at $53.39. The purchase will add three gold mines to its Agnico’s existing portfolio and…