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 $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.
Anglo American: FutureSmart Mining
Anglo American’s approach to technology, digitalisation and sustainability is changing the nature of the way the company mines. These are the step-change innovations that will transform the nature of mining – how the company sources, mines, processes, moves and markets its products – and how its stakeholders experience that business. Anglo American is transforming its physical and societal footprint with FutureSmart Mining.
“FutureSmart Mining is our innovation-led approach to sustainable mining,” Anglo American’s Tom McCulley told Mining Gllobal. In his role as CEO for Anglo American Peru & Group Head of Projects he has overseen investment of more than $5bn at the company’s Quellaveco copper project in Peru.
“These are the step-change innovations that will transform the nature of mining – how we source, mine, process, move and market our products – and how our stakeholders experience our business. It’s about transforming our physical and societal footprint.”
Anglo is undertaking a feasibility study to assess the possibility of rolling out one of its FutureSmart technologies, Coarse Particle Recovery (CPR), at Quellaveco. “CPR crushes particles to 2.5 times larger than normal, reducing energy consumption and mill time, leading to a 20% increase in throughput and 85% water recovery - a key issue in Peru given the concerns around water scarcity,” says McCulley.
“By allowing water to release from the much coarser particles, CPR will reduce the risks associated with wet tailings and ultimately help eliminate them altogether. When combined with low cost additives, it is possible to dewater residual waste and produce dry stackable tailings. This technology remains a focus area for us as water sent to tailings facilities often represents the largest water loss at a mine.”
Quellaveco is going to be the first mine to run the FutureSmart operating model from day one. Anglo’s idea is to build a stable base on which it can layer new technologies, CPR being one of them.
“We will also be a fully digital mine, which brings us future benefits in terms of understanding and applying changes in real time,” adds McCulley. “Our trucks and our drills will be automation-ready. We have taken the approach that, when we decide to move into an autonomous operation, no jobs will be lost, but the nature of some people’s jobs will have to change.”
FutureSmart is a blend of technology and sustainability,” said McCulley in an interview with Global Business Reports. “If you go back to the vision and design of Quellaveco, it has really been focused on the long-term sustainability of the mine through effective use of things like water, energy and the environment. Quellaveco has been focused on technology such as automation, with digital and analytical tools all coming together. We will be looking at future technologies to bolt on as we go to ensure that we are optimizing the sustainable use of resources and remaining cost-effective.”
Anglo American’s Quellaveco copper project in Peru has created 15,000 jobs during construction and approximately 2,500 jobs are planned for operations, increasing Peru’s copper production by a forecast 300,000 tonnes per year. The mine’s first copper production is expected in 2022. To learn more about Anglo American's Quellaveco copper project read our feature here.