Agnico Eagle Secures Majority Stake in O3 Mining, Extends Offer Deadline

Agnico Eagle Mines (TSX:AEM,NYSE:AEM) now holds approximately 94.1 percent of O3 Mining's (TSXV:OIII,OTCQX:OIIIF) outstanding shares as the company continues its acquisition plan.

To secure the 94.1 percent stake, Agnico Eagle acquired 110,424,431 O3 Mining shares for total consideration of US$184.4 million. Payment for these shares is expected to be completed by January 28, 2025.

The company has also extended its O3 Mining offer deadline by 10 days to 11:59 p.m. EST on February 3, 2025, providing remaining shareholders additional time to tender their shares.

This development follows the fulfillment of all conditions tied to Agnico Eagle's cash offer of US$1.67 per share, which represents a 58 percent premium over O3 Mining’s closing share price on December 11, 2024.

In a Friday (January 24) release, O3 Mining CEO José Vizquerra emphasized the immediate value delivered to shareholders, as well as Agnico Eagle’s ability to advance the Marban Alliance project, a key asset for O3 Mining.

The companies encouraged remaining O3 Mining shareholders to tender their shares to secure the cash price of US$1.67 per share. Shareholders whose shares of O3 Mining are held through financial intermediaries are advised to contact their brokers or banks promptly, as internal deadlines may precede the February 3, 2025, cutoff.

Following the extended deadline, Agnico Eagle plans to implement a second step transaction to acquire the remaining untendered shares. This approach is detailed in Agnico Eagle’s takeover bid circular.

In conjunction with these activities, representatives of Agnico Eagle have been added to O3 Mining’s board of directors. These include Peter Netupsky, Carol Plummer, Jean Robitaille and Chris Vollmershausen.

Vizquerra and CFO Elijah Tyshynski will continue in their roles during the transitional phase at O3 Mining, which is expected to culminate in the completion of the second step transaction.

With the acquisition, Agnico Eagle now holds 95 percent of O3 Mining’s shares on a basic basis.

The transaction also affects Agnico Eagle’s interests in other companies. Through O3 Mining, Agnico Eagle now has indirect control over significant shares of Cartier Resources (TSXV:ECR) and STLLR Gold (TSX:STLR,OTCQX:STLRF).

The company’s combined holdings in Cartier Resources now represent 26.7 percent of the company’s outstanding shares on a basic basis. For STLLR Gold, Agnico Eagle now holds 10.1 percent of the company’s outstanding shares.

Agnico Eagle stated that it may acquire additional securities of these companies or dispose of its current holdings depending on market conditions and other relevant factors.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.