Agnico Eagle Mines Limited acquired Grayd Resource Corporation for ~C$275 million (take-over bid; C$2.80 per share cash-or-share option).
Agnico Eagle agreed to acquire all of Grayd Resource Corporation by take-over bid at C$2.80 per share, valuing the transaction at approximately C$275 million and a premium of about 65.7%. Grayd shareholders could elect cash or a mix of cash and Agnico shares, with total cash capped at about one third of consideration. Grayd owned 100% of the La India project in Sonora, Mexico, about 70 km from Agnico's Pinos Altos mine; La India later became a producing Agnico mine.
Agnico framed Grayd as bringing its mine-development and exploration skills to a promising early-stage deposit that could leverage the construction and operating experience gained at its nearby Pinos Altos mine.
This acquisition is consistent with our long-term strategy of building value by bringing our mine development and exploration skills to promising early stage gold deposits and projects. The Grayd properties will benefit from the construction and operating experience gained at our Pinos Altos mine.
Advisory firms were not disclosed for this transaction.