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Agnico Eagle and Kirkland Lake Gold seal the deal

Mining companies consummate $13.4B transaction announced last September
Kirkland Lake Gold Macassa
(Kirkland Lake Gold)

The "merger of equals" between Agnico Eagle and Kirkland Lake Gold is done.

The two mining companies made that official in a Feb. 8 news release. The new and combined company will be called Agnico Eagle Mines Limited.

The two companies, which announced the $13.4-billion transaction back on Sept. 28, cleared the final regulatory hurdle for the combination to take place when Australia’s Foreign Investment Review Board approved the deal. Shareholders for both companies approved the transaction in November.

The combined company will remain listed on the Toronto Stock Exchange and New York Stock Exchange under the ticker "AEM." Shares of Kirkland Lake Gold will be de-listed from the TSX at the end of trading on Feb. 9 and from the NYSE upon the opening on Feb. 9.

Agnico Eagle issued almost 210 million common shares to former Kirkland Lake Gold shareholders as consideration for their shares. The new Agnico Eagle has a market capitalization of approximately US$22.4 billion.

Agnico Eagle's release its fourth quarter and full year 2021 results on Feb. 23 after normal trading hours. A conference call takes place on Feb. 24 at 11 a.m. eastern time when senior management will discuss those results and future plans.

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Kirkland Lake Gold brings to the fold the Macassa Mine in Kirkland Lake; the Detour Lake Mine, north of Cochrane; and the Fosterville Mine in the state of Victoria, Australia. Agnico Eagle is precious metals producer operating in Canada, Finland and Mexico with other exploration and development projects in these countries and the U.S. and Colombia.

Kirkland Lake Gold began as Goldpac Investments and then Brimstone Gold Corp, in the 1980s and 1990s before being renamed Foxpoint Resources.

The company acquired a package of former Kirkland Lake-area mining properties from Kinross Gold for $5 million in December 2001, specifically the Macassa Mine and several adjoining gold properties in the Lake Shore, Wright Hargreaves and Teck Hughes mines. Kinross had shuttered Macassa in 1999 due to high production costs, labour issues and low gold prices.

Under the Foxpoint flag, operations at Macassa were revived in May 2002 at the mill facility with the processing about 60,000 tonnes of tailings, producing 5,500 ounces of gold. The first gold pour was in July of that year.

Foxpoint Resources changed its name to Kirkland Lake Gold in 2003 and recommissioned the Macassa Mine in July of that year.

Over the years, the company acquired St. Andrew Goldfields and Australia's Newmarket Gold both in 2016, and Detour Gold in 2019.