Agnico Eagle signs deal to buy TMAC Resources
Acquisition comes after sale to Chinese company blocked
Agnico Eagle Mines Ltd. has signed a $286.6-million deal to buy TMAC Resources Inc., which had its sale to a Chinese company blocked by Ottawa late last year.
The $2.20 per share being offered by Agnico Eagle is up from the $1.75 that shareholders would have received had the sale to China’s Shandong Gold Mining Co. Ltd. been allowed. TMAC shares closed at $1.57 on the Toronto Stock Exchange on Monday. TMAC’s main asset is a gold mining project at remote Hope Bay in Nunavut.
The federal government blocked TMAC’s deal to be bought by Shandong following a review under the Investment Canada Act. Agnico Eagle will now takeover the Shandong deal which has already been approved by TMAC shareholders.