Agnico Eagle announces merger with Kirkland Lake Gold

$13.4-billion deal billed as ‘merger of equals’

Agnico Eagle’s Meliadine mine is located near Rankin Inlet. (File photo courtesy of Agnico Eagle)

By Nunatsiaq News

Nunavut’s biggest gold miner is poised to become even bigger, following an announcement Tuesday that Agnico Eagle Mines Ltd. plans to merge with Kirkland Lake Gold Ltd.

Agnico Eagle operates several gold mines in Nunavut: the Meadowbank complex north of Baker Lake, Meliadine near Rankin Inlet, and the Hope Bay property in Cambridge Bay. The company also operates mines in northern Quebec, Australia, Finland and Mexico.

Kirkland Lake Gold operates three mines in Ontario and one in Australia.

The two companies are describing the $13.4 billion deal as a “merger of equals.” The new company would operate as Agnico Eagle, a news release issued by Agnico Eagle on Tuesday said.

The boards of directors of both companies have unanimously approved the agreement, but shareholders must still approve the deal. The transaction is expected to close in December or early 2021.

The executive teams and boards of the two companies would both be merged under the plan. Sean Boyd, Agnico Eagle’s president and CEO, would become executive chair of the board, while Tony Makuch, president and CEO of Kirkland Lake Gold, would become the new CEO.

Share prices for both companies fell on Tuesday, as analysts said the agreement offered investors a lower premium that comparable mergers have done.

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(9) Comments:

  1. Posted by Inuk on

    Nunavut will make billion dollar companies even richer! Imagine if Inuit made money out of our resources that some people from the south end up making.

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    • Posted by Jose Illnik on

      No kidding,RIGHT? Should put a moratorium on any further developments until wholly beneficiary ownership can be achieved,,,,,,,,no matter how long the wait.

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      • Posted by So Never? on

        So that would be never? None of the IRAs are willing to take the risk of operating or running a mine because they know how hard it is. When TMAC was for sale KIA or NTI could have bought it for pennies on the dollar of what it cost to build out that site, but they didn’t. Inuit orgs have no ambitions or drive to operate any of these mines, they just want the royalties and land leases.

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      • Posted by Jimmy on

        You CAN own it anytime you want. Your Inuit organizations have deep pockets and they have the ability to borrow more money. Interest rates are low now. Time to put your money where your mouth is and buy them out!

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  2. Posted by Near or In? on

    “the Meadowbank complex north of Baker Lake, Meliadine near Rankin Inlet, and the Hope Bay property in Cambridge Bay”.
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    Interesting choice of words, considering Meliadine is about 25km away from Rankin and can be driven to, Meadowbank is about 75km away from Baker Lake and can be driven to, and Hope Bay is like 125km from Cambridge Bay and on the mainland.

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  3. Posted by Andy on

    There is a typo in the article. you are referring to December or early 2021. It should be early 2022

  4. Posted by Gold is so passe on

    The whining and gnashing of teeth on these articles never ceases to amuse, no matter how predictable it has become…

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    • Posted by Sam on

      Same old group of anti mining left wing land lovers.

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      • Posted by Not so sure on

        I don’t know, I think the animating sense here is jealousy, not any coherent form of leftism (though I anticipate you might say those are the same thing).

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