Agnico Eagle to Acquire Canadian Malartic's Exploration Assets

Agnico Eagle Mines Ltd. (TSX:AEM,NYSE:AEM) announced that it will acquire all of the Canadian exploration assets belonging to Canadian Malartic Corp. (CMC); those assets include the Kirkland Lake and Hammond Reef gold projects.
As quoted in the press release:

CMC is a corporation 50-50 owned and operated by Agnico Eagle and Yamana Gold Inc. (“Yamana“). The Transaction is being structured as an asset deal, whereby Agnico Eagle will acquire all of Yamana’s indirect 50% interest in the Canadian exploration assets of CMC, giving Agnico Eagle 100% ownership of CMC’s interest in the assets on closing of the Transaction. The effective purchase price after the distribution of the sale proceeds by CMC to its shareholders will be US$162.5 million in cash. The Transaction will not affect the Canadian Malartic mine and related assets including Odyssey, East Malartic, Midway, and East Amphi, which will continue to be jointly owned and operated by the Company and Yamana through CMC and the Canadian Malartic General Partnership (“Canadian Malartic GP“).

Sean Boyd, CEO of Agnico Eagle, commented:

The purchase of the CMC asset portfolio enhances our longer-term development pipeline, and provides us with potential production growth post our current mine buildout in Nunavut. The Kirkland Lake property package enhances our current mineral reserves and offers near-term exploration upside, while the Hammond Reef project provides good optionality to a potential rise in the gold price.

Click here to read the full Agnico Eagle Mines Ltd. (TSX:AEM,NYSE:AEM) press release.