Gold miner Agnico Eagle has moved to consolidate its holding in the Val d'Or mining camp, Quebec, with a C$26-million offer for Toronto-based exploration company Alexandria Minerals.
The acquisition will allow Agnico Eagle to consolidate an additional 14 819 ha of mining claims that cover about 35 km of strike length along the Cadillac-Larder Lake. Three of Alexandria's properties – Orenada, Akasaba and Sleepy – collectively contain historical inferred mineral resources of 526 702 oz of gold and indicated mineral resources of 448 654 oz.
"Agnico Eagle has a long history of involvement with Alexandria, both as an equity investor and through the purchase of the Akasaba West property in 2014," Agnico Eagle senior VP for exploration Alain Blackburn said on Thursday.
"We believe that the key Alexandria properties are highly prospective and underexplored and could potentially provide future sources of ore at our nearby Goldex mine,” he added.
Alexandria's board had determined that the proposal constituted a “superior proposal” as defined in a May 2019 arrangement agreement between the explorer and Chantrell Ventures.
To enter into a definitive agreement, Alexandria would first have to terminate the Chantrell agreement and pay the termination fee of C$875 000.
Agnico Eagle currently owns 28.8-million Alexandria shares, representing 5.6% of the issued and outstanding shares of Alexandria.