Agnico Eagle to Acquire O3 Mining in Friendly Transaction

Core Points - Agnico Eagle Mines Limited has made an all-cash offer of $1.67 per share for O3 Mining, representing a 58% premium over O3 Mining's closing price on December 11, 2024, valuing the offer at approximately $204 million [1][2] - The offer has been unanimously recommended by O3 Mining's Board and Special Committee, with support from shareholders representing 22% of outstanding shares [1][11] Offer Details - The offer price of $1.67 per Common Share represents a 57% premium to the volume weighted average price of the Common Shares on the TSX Venture Exchange for the 20-day period ended December 11, 2024 [2] - Agnico Eagle intends to formally commence the offer by mailing a take-over bid circular to O3 Mining shareholders on or about December 19, 2024, with the offer open for acceptance for a minimum of 35 days [7][8] Asset Overview - O3 Mining's primary asset is the 100%-owned Marban Alliance property located near Val d'Or, Québec, which includes the Marban deposit with estimated resources of 52.4 million tonnes grading 1.03 g/t gold for 1.7 million ounces of gold [3] - The integration of the Marban Alliance property with Agnico Eagle's Canadian Malartic complex is expected to create significant synergies by leveraging existing infrastructure and operational expertise [4] Management Comments - Agnico Eagle's CEO emphasized that the acquisition aligns with their regional strategy and will enhance the production profile at the Canadian Malartic complex [5] - O3 Mining's CEO stated that the offer is an excellent outcome for shareholders and validates the efforts made in advancing the Marban Alliance project [6] Recommendations and Conditions - The Board of Directors of O3 Mining recommends that shareholders tender their shares, supported by fairness opinions from financial advisors [9] - The offer is conditional upon the deposit of at least two-thirds of the Common Shares outstanding, excluding those owned by Agnico Eagle [10] Lock-Up Agreements - Directors and officers of O3 Mining, along with certain funds, have agreed to lock-up agreements to tender their shares to the offer, representing approximately 22% of the outstanding shares [11] Additional Information - Further details regarding the offer will be included in the take-over bid circular and O3 Mining's directors' circular, expected to be delivered on or about December 19, 2024 [13]