TORONTO – Agnico Eagle Mines has announced its intention to acquire all the shares, options and warrants of Vancouver-based Cayden Resources. Agnico is offering $205 million in cash and shares. Each Cayden share would be exchanged for 0.09 of an Agnico Eagle share plus $0.01.
The directors and officers of Cayden have indicated they support the agreement with Agnico.
Cayden has two gold exploration projects in Mexico. The El Barqueno property near Puerto Vallarta hosts a epithermal bonanza gold vein and disseminated stockwork system. Several gold bearing zones have been identified by drilling and trenching in an area approximately 13.5 km long by 4.7 km wide. The Morelos Sur project near Acapulco includes three properties (La Magnetita, Tenantla and Las Calles). Exploration by Cayden has outlined a 25 km2 gold soil anomaly at La Magnetita and Tenantla.
Agnico Eagle says it believes Cayden’s properties will fit well with its own interests in Mexico. Agnico’s portfolio in that country includes the La India, Pinos Altos gold mines as well as the Tarachi exploration project.
Details of the offer are available at AgnicoEagle.com.