Fresnillo signs agreement to acquire Probe Gold for $558m

Core Viewpoint - Fresnillo has signed a definitive agreement to acquire Probe Gold for approximately C$780 million ($558.51 million), aiming to expand its global precious metals portfolio beyond Mexico [1][4]. Group 1: Transaction Details - The acquisition will be executed through a statutory plan of arrangement under the Business Corporations Act (Ontario) [1]. - Probe shareholders will receive C$3.65 in cash for each share they own, reflecting a 39% premium over Probe's closing share price on the Toronto Stock Exchange (TSX) as of October 30, 2025 [2]. - The transaction also represents a 26% premium over the volume-weighted average price of Probe shares on the TSX for the 20 trading days ending October 30, 2025 [2]. Group 2: Support and Recommendations - The Board of Directors of Probe has unanimously recommended that shareholders vote in favor of the transaction [2]. - All directors and officers of Probe, along with Eldorado Gold, holding around 12% of Probe's shares, have entered voting support agreements with Fresnillo [3]. Group 3: Company Background and Strategic Intent - Fresnillo is recognized as the world's largest primary silver producer and Mexico's largest gold producer, operating eight mines and four advanced exploration projects in Mexico, with exploration interests in Peru and Chile [3][4]. - The company aims to reinforce its position as a leading global precious metals company and broaden its project pipeline beyond Mexico [4]. Group 4: Expected Timeline and Context - The transaction is contingent on various approvals and is expected to close in the first quarter of 2026 [4]. - Probe's CEO highlighted that this transaction offers an attractive premium and represents an excellent outcome for shareholders, validating the efforts of the Probe team [5].