Agnico Eagle Mines has announced the disposition of its entire stake in Orla Mining, amounting to 38,002,589 common shares, for C$14.75 per share, with total proceeds reaching C$560.5m ($405m).
The sale, conducted through the Toronto Stock Exchange (TSX), involved buyers from Canada, the US and other countries.
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An early warning report will be filed by the company in accordance with securities regulations.
Prior to this transaction, Agnico Eagle held an 11.3% non-diluted interest in Orla Mining.
Agnico Eagle’s investment strategy includes acquiring strategic positions in high-potential opportunities. The company periodically assesses its minority investments in relation to its strategic objectives.
The sale of the Orla Mining shares allows Agnico Eagle to capitalise on its investment. The company has stated that it has no current plans to acquire further securities in Orla.
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By GlobalDataAgnico Eagle president and CEO Ammar Al-Joundi said: “Our investment in Orla has been mutually beneficial for both companies.
“With Orla’s success in evolving into an established intermediate producer and in the context of the current gold market, we believe it is the right time to monetise our investment. This demonstrates our commitment to disciplined capital allocation and allows us to redeploy capital to our strategic priorities.”
Agnico Eagle had been a supportive shareholder of Orla Mining since its inception in 2017.
Orla Mining has since evolved into a mid-tier mining producer and is now expanding its shareholder base.
Orla Mining president and chief operating officer Jason Simpson said: “Since our modest beginnings in 2017 as a junior exploration company, Orla has been fortunate to count cornerstone shareholders like Agnico Eagle among our strongest supporters.
“Thanks, in no small part, to Agnico Eagle’s technical expertise and financial backing, we have now grown into a mid-tier gold producer. This mutually beneficial next step allows Orla to broaden our investor base and enhance long-term liquidity.”
In January, Agnico Eagle announced the acquisition of 110,424,431 common shares of O3 Mining.
This represents approximately 94.1% of O3 Mining’s outstanding common shares and is part of a board-supported takeover bid at C$1.67 per share.
