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Creation of 'New Agnico Eagle' gets shareholder nod

Agnico Eagle-Kirkland Lake Gold deal to be finalized in early 2022
Kirkland Lake Gold Macassa Mine 2
(Kirkland Lake Gold photo)

Shareholders for Agnico Eagle and Kirkland Lake Gold have voted in favour of establishing a Canadian gold mining powerhouse.

Labelled as a "merger of equals," both companies announced that its respective shareholders approved the combination at special meetings held Nov. 26.

The two companies announced the $13.4-billion transaction back on Sept. 28.

Upon finalizing the deal sometime in early 2022, after receiving final regulatory approval, Agnico Eagle and Kirkland Lake Gold shareholders will own 54 per cent and 46 per cent of the combined company, respectively.

All of the issued and outstanding shares of Kirkland Lake Gold will be acquired by Agnico Eagle for common shares for Agnico for consideration of per Kirkland share equal to $0.79 of an Agnico Eagle.

Agnico Eagle shareholders voted 99.86 per cent in favour of the combination. The arrangement was approved by 80 per cent of Kirkland Lake Gold shareholders.

In a statement, Kirkland Lake Gold president-CEO Tony Makuch said the creation of a "new Agnico Eagle" will establish a "new leader in the gold industry" by way of performance, financial heft and a pipeline of mine and exploration projects in the historic and mineral-rich Abitibi Greenstone Belt in northeastern Ontario and western Quebec.

"We believe this will be a company positioned to generate superior long-term returns for shareholders going forward," he said.

Kirkland Lake Gold's asset include the Macassa Mine in Kirkland Lake; the Detour Lake Mine, north of Cochrane; and the Fosterville Mine in Australia.

Agnico Eagle brings to the table the Canadian Malartic and LaRonde Complex in Quebec; Hope Bay, Meadowbank and Meliadine mines in Nunavut; La India and Pino Altos mines in Mexico; and the Kittila mine in Finland.

"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," said Sean Boyd, Agnico Eagle's CEO.

"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 finalized, which is expected to occur in the first quarter of 2022."