Agnico Eagle signs deal to buy TMAC Resources

By The Canadian Press, Toronto   

Business Operations Industry mining

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.




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