Agnico Eagle Mines Limited’s (TSX: AEM) shareholders have voted overwhelmingly in favour of the resolution approving the issuance of Agnico Eagle common shares in connection with the proposed merger with Kirkland Lake Gold Ltd.
The resolution was approved by approximately 99.86% of the votes cast by Agnico Eagle shareholders at the Meeting, with a shareholder turnout of 69.62%
Kirkland Lake Gold shareholders have also approved the Merger.
The Merger was announced in September 2021.
Pursuant to the Merger Agreement, Kirkland Lake Gold shareholders will receive 0.7935 of an Agnico Eagle common share for each Kirkland Lake Gold common share. The Consideration to Kirkland Lake Gold represents approximately a 1% premium to the 10-day volume weighted average prices on the Toronto Stock Exchange, as at close of trading Friday September 24, 2021 and implies a combined market capitalisation of approximately $24 billion.
Upon closing, existing Agnico Eagle and Kirkland Lake Gold shareholders will own approximately 54% and 46% of the combined company, respectively.
“I would like to thank our shareholders and the shareholders at Kirkland Lake Gold for supporting the merger of the two companies. We are very excited about the transaction as it positions Agnico Eagle as the leading low risk global gold company with growing production, low costs and strong ESG leadership,” Agnico Eagle CEO, Sean Boyd, said.
“Our near-term focus will be on completing the integration plan for the two companies while we await the final regulatory approvals. We look forward to providing additional information on the combined businesses once the transaction has been finalised, which is expected to occur in the first quarter of 2022,” added Mr Boyd.
The Merger will create a best-in-class gold mining company operating in one of the world’s leading gold regions, the Abitibi-Greenstone Belt of northeastern Ontario and northwestern Quebec, with superior financial and operating metrics.
Consolidation within the Abitibi will also provide the new Agnico Eagle with significant value creation opportunities through synergies and other business improvement initiatives.
Additionally, the company is established uniquely as the only gold producer in Nunavut and well positioned internationally with profitable and prospective assets in Australia, Finland, and Mexico.
Completion of the Merger is subject to the granting of the final order by the Ontario Superior Court of Justice and the approval of the Australian Foreign Investment Review Board and the satisfaction or waiver of other customary closing conditions. It is currently expected that the effective date of the Merger will occur during the first quarter of 2022.
About Agnico Eagle Mines
Agnico Eagle is a senior Canadian gold mining company, producing precious metals from operations in Canada, Finland and Mexico. It has a pipeline of high-quality exploration and development projects in these countries as well as in the United States and Colombia.
Agnico Eagle is a partner of choice within the mining industry, recognized globally for its leading environmental, social and governance practices. The Company was founded in 1957 and has consistently created value for its shareholders, declaring a cash dividend every year since 1983.
For further information please visit: https://www.agnicoeagle.com/