May 17, 2020

Agnico Eagle Signs Deal to Acquire Cayden Resources for $186.8 Million

Mine site
Acquisition
Agnico Eagle
Sean Boyd
Admin
2 min
Agnico Eagle Signs Deal to Acquire Cayden Resources for $186.8 Million
Canadian mining company Agnico Eagle Mines Limited (TSX:AEM) (NYSE:AEM) has agreed to purchase exploration company Cayden Resources Inc. (TSX-V:CYD) for...

Canadian mining company Agnico Eagle Mines Limited (TSX:AEM) (NYSE:AEM) has agreed to purchase exploration company Cayden Resources Inc. (TSX-V:CYD) for $186.8 million in a mostly stock deal.

The sale, which was announced on Monday, will include Cayden’s two primary exploration projects - the El Barqueno and the Morelos Sur properties in Mexico - as well as 100 percent of the company’s issued and outstanding common shares.

"This acquisition is consistent with our long-term strategy of acquiring promising, early stage gold projects where we can add value through focused exploration and mine building,” sais Angico Eagle CEO Sean Boyd.

"This strategy has served us well in Mexico, and we believe that the Cayden properties are a very good fit with our existing southern operations and skill sets."

The deal calls for Agnico to pay 0.09 of a share plus one cent in cash for each Cayden share, including issuable shares under outstanding options and warrants.

The El Barqueno project covers roughly 41,000 hectares in the Guachinango gold district in Jalisco State, Mexico and hosts an abundant of epithermal bonanza type gold vein and disseminated stockwork system.

The Morelos Sur site, which covers 13,000 hectares in the Guerrero gold belt in the country’s Guerrero State, consists of three properties: La Magnetita, Tenantla and Las Calles.

"The property has tremendous exploration upside and several prospective zones that we believe can ultimately support heap leach and/or milling operations, which would allow us to build another meaningful business in Mexico," said Tim Haldane, Agnico-Eagle Mines US and Latin America operations senior vice-president.

The acquisition is subject to approval from Cayden security holders, Mexican anti-trust and other regulatory and court approvals. The deal is expected to be completed before the end of the year.

"We are pleased with the value that this transaction delivers to our shareholders and are excited at the prospect of Agnico applying its resources to the advancement of El Barqueño and the results that will surely follow," Cayden Resources CEO and president Ivan Bebek said.

Earlier this year, Agnico partnered with Yamana Gold (TSX:YRI) to acquire Osisko Mining Corp. for $3.9 billion.

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Jul 20, 2021

British Lithium Pressured Due To Calls for Electric Cars

BritishLithium
mining
Lithium
Sustainability
3 min
The ever-increasing need for electric vehicles is mounting pressure on British Lithium as the 2035 deadline inches closer

The British demand for lithium is set to reach 75,000 tonnes by 2035 as the government works towards their ban on the sale of high-polluting diesel and petrol vehicles within the UK. This comes as automakers worldwide continue to insist on the benefits electric vehicles will have on slowing the rate of climate change. 

It is estimated that the UK will require 50,000-60,000 MT of lithium carbonate a year by 2035 for battery production to satisfy government needs. This is assuming production remains at 1.2 million vehicles per year, and the amount of lithium required does not increase.

British Lithium, which hopes to begin constructing a quarry to produce 20,000 MT of lithium carbonate a year in a $400 million investment, are not without competitors, both within the UK and abroad. 

Competition For Lithium Rises In Europe 

After only five years after its initial launch, Cornish Lithium is setting its sights on becoming a UK powerhouse in mining lithium, aiming to begin commercial production in under four years. Jeremy Wrathall, a former investment banker and current managing director of Cornish Lithium, had the future in mind when founding the company. 

“In 2016, I started to think about the electric vehicle revolution and what that would mean for metal demand, and I started to think about lithium,” he said in an interview with AFP. “A friend of mine mentioned lithium being identified in Cornwall, and I just wondered if that was a sort of unrecognised thing in the UK.”

Lithium was first discovered in Cornwall around 1864 and has not been mined again since 1914 when it was produced as an ingredient in fireworks. Now, however, Cornish Lithium is reportedly in the testing stage to see if the metal can be produced commercially to meet the growing demand required for the electric car sector. 

Despite Cornwall’s close historic ties to mining lithium, Wrathall insists that the project is purely commercial. 

Cornish Mining Revival For Lithium Production

“It’s not a mission that drives me to the point of being emotional or romantic,” he says. “It’s vitally important that we do get this technology otherwise Europe has got no lithium supply.”

The European Commission has also stated their goal to end the sale of new petrol and diesel cars by 2035 to aid the environment. That being said, the majority of lithium extraction currently relies on power provided by environmentally damaging fossil fuels─a slight contradiction. 

Alex Keynes, from the Brussels-based lobby group Transport & Environment, is adamant that mining for lithium should be done sustainably. 

“Our view is that medium-to-long term, the majority of materials including lithium should come from efficient and clean recycling.

“Europe from a strategic point of view should be looking at securing its own supply of lithium.”

Despite growing competition from abroad, British Lithium Chairman, Roderick Smith, continues to place importance on the mining of lithium within the UK. 

“Imagine what the UK economy would look like if we lost our automotive industry,” Smith says. “The stakes are high for the UK.”

Smith expects the UK to compete with other European countries to secure a lithium battery plant in the near future.

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