PERTH (miningweekly.com) – A second independent proxy advisory firm has recommended that shareholders of triple-listed Kirkland Lake Gold vote in favour of a 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.

Advisory firm Glass Lewis has joined its recommendation to that of firm Institutional Shareholder Services (ISS), in saying that the proposed agreement was a "strategically compelling merger of equals".

“We are pleased that both of the leading proxy advisory firms have now recommended shareholders vote for the merger with Agnico Eagle. We are particularly encouraged that, in providing their favourable recommendations, both Glass Lewis and ISS referenced the compelling strategic rationale for the combination, which was a key factor in our decision to merge,” said Kirkland Lake president and CEO Tony Makuch.

“We are two companies that have low-cost, high-margin operations in favourable jurisdictions; that are committed to maintaining significant financial strength while also investing for future growth and returning significant capital to shareholders; and that share industry leadership in key areas such as growing reserves, building per share value and environmental and social governance. The merger is the right strategic fit for our companies and our shareholders and will create a new leader in the gold mining industry.”

The transaction, which would establish the new Agnico Eagle, implies a combined market capitalisation of about $24-billion. Upon closing, existing Agnico Eagle and Kirkland Lake Gold shareholders would 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.

Kirkland Lake shareholders are expected to vote on the merger on November 26.