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Agnico Eagle Mines has delivered a definitive offer to acquire 100% of Alexandria Minerals’ issued and outstanding common shares in a deal valued at approximately C$26m ($19.51m).

Alexandria Minerals’ board of directors has determined that Agnico Eagle’s proposal constitutes a ‘Superior Proposal’ as defined in the arrangement agreement between Alexandria and Chantrell Ventures. It is not subject to any financing or due diligence conditions.

Following the acquisition, Agnico Eagle will consolidate an additional 14,819ha of mining claims that covers approximately 35km of strike length along the Cadillac-Larder Lake break in the prospective Val d’Or gold camp.

Agnico Eagle Mines Exploration senior vice-president Alain Blackburn said: “Agnico Eagle has a long history of involvement with Alexandria, both as an equity investor and through the purchase of the Akasaba West property in 2014.

“We believe that the key Alexandria properties are highly prospective and underexplored and could potentially provide future sources of ore at our nearby Goldex mine.”

Alexandria Minerals further advised Agnico Eagle that it has provided notice of the proposal to Chantrell as required by the Chantrell Agreement.

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Furthermore, Agnico Eagle was advised that subject only to the expiry or waiver by Chantrell of its right to match during the relevant period, Alexandria will enter the definitive agreement with Agnico Eagle in connection with the proposal.

Alexandria Minerals also proposes to terminate the Chantrell Agreement and pay the termination fee of C$875,000 ($656,609) in order to enter the definitive agreement.

At present, Agnico Eagle owns 28.8 million Alexandria shares, representing 5.6% of the issued and outstanding shares of Alexandria Minerals.