TORONTO - AGNICO-EAGLE MINES has signed a merger agreement with CUMBERLAND RESOURCES. The move would increase both Agnico's gold production and reserve numbers.
Cumberland owns 100% of the Meadowbank gold project in Nunavut. The deposit has proven and probable reserves of 21.3 million tonnes grading 4.2 g/t Au, or 2.9 million oz of gold. Production is to begin in early 2010 at a rate of 400,000 oz/y for the first four years.
Agnico is proposing to exchange 0.185 of one of its common shares for each Cumberland share. The deal is a 23-28% premium on Cumberland's share price, making the deal worth $710 million.
Apparently the Cumberland board supports the takeover by Agnico, making this a rare, friendly deal. Additional information is available at www.Agnico-Eagle.com and www.CumberlandResources.com.