(MENAFN- ProactiveInvestors) Shares of () (NYSE:AEM) rose 2.71 percent to US$29.57 and C$37.22 in Toronto today after announcing the purchase of Ltd. () for C$31.6 million.
Agnico Eagle will now own ’s El Rayo El Tecolote La Tortuga San Pedro and Quila exploration projects in the state of Jalisco Mexico.
As for the definitive agreement dated April 10 2015 Agnico Eagle will acquire 100% of 's issued and outstanding common shares including shares issuable upon the exercise of outstanding options and warrants for a total of C$31.6 million or some C$0.325/ common share.
shareholders will be receiving 0.00793 of an Agnico Eagle common share C$0.01 in cash and one common share valued at C$0.02 per share of a proposed spun off entity ‘SpinCo’ at a premium of about 51% to the volume weighted average price of common shares for the 20 day period ending April 9 2015.
SpinCo will initially be capitalized with approximately C$2.0 million in cash contributed by Agnico Eagle.
"This transaction secures the continued advancement of 's main projects in Jalisco by Agnico Eagle while also facilitating shareholders' continued participation in the balance of its exploration assets through their ownership of SpinCo shares….The SpinCo entity will also provide shareholders with the potential opportunity to participate in future exploration efforts in Mexico with members of our existing management team" said ’s President and CEO Andrew Thomson.
Agnico a Toronto based gold miner has nine mines in Canada Finland and Mexico and it expects significant growth this year due to lower fuel costs and weaker local currencies anticipated in Canada Mexico and Finland.
Agnico has participated in other takeovers over the past year and its Q4 results last February were positively impacted by the acquisition of the Canadian Malartic mine in Quebec.
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