FIRB approves Kirkland/Agnico Eagle deal
PERTH (miningweekly.com) -The Foreign Investment Review Board (FIRB) has approved gold miner Kirkland Lake Gold’s merger of equals with TSX- and NYSE-listed Agnico Eagle Mines.
The two companies in September struck a C$13.4-billion ‘merger of equals’, under which Kirkland Lake shareholders would receive 0.7935 of an Agnico Eagle common share for each share held.
Kirkland said on Wednesday that the FIRB approval satisfied the last third-party closing condition to the merger, and was the final key regulatory requirement for the merger.
The transaction, which will establish the new Agnico Eagle, implies a combined market capitalisation of about $24-billion. Upon closing, existing Agnico Eagle and Kirkland Lake Gold shareholders will own about 54% and 46% of the combined company, respectively.
Upon closing of the merger, the company would have $2.3-billion of available liquidity, a mineral reserve base of 48-million ounces of gold and an extensive pipeline of development and exploration projects.
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