Agnico-Eagle to grab Nunavut gold field

Agnico-Eagle Mines Ltd., the owner of the recently-opened Meadowbank gold mine near Baker Lake, will pay about $570 million to acquire the Meliadine gold property near Rankin Inlet through a friendly deal with Meliadine’s owner, Comaplex Minerals Corp., Agnico-Eagle said in an announcement issued April 1.

The Meliadine Property, first explored by the Western Mining Corp. in the late 1980s, is believed to hold at least 3.29 million ounces of gold at grades that run as high as 7.9 grams per tonne.

“The Meliadine property is a perfect fit with our Arctic skill set and the transaction solidifies our commitment to Nunavut and our foundation in Canada,” Sean Boyd, vice-chairman and CEO of Agnico-Eagle said in a news release.

Boyd said his company will accelerate exploration work and hopes to finish a feasibility study for a mine at Meliadine by the end of 2011.

Agnico-Eagle will obtain the 87 per cent of Comaplex that it doesn’t already own through a share swap.

Current Comaplex shareholders will get new Agnico-Eagle shares whose value is about 34 per cent higher than their existing Comaplex shares.

Comaplex’s non-Meliadine assets will be spun off into a new subsidiary company called “New Comaplex.”