Canadian gold producer Agnico-Eagle Mines and Grayd Resource Corporation announced jointly today that Agnico-Eagle has formally commenced its $275 million take-over bid to acquire Grayd.
Agnico-Eagle is a long established gold producer with operations in Canada, Finland and Mexico and exploration and development activities in Canada, Finland, Mexico and the United States.
Grayd is a growth-oriented junior natural resource company focused primarily on exploring and developing its 100 percent interest in the La India project in the Mulatos Gold Belt of Sonora, Mexico (approximately 70 kilometres northwest of Agnico-Eagle's Pinos Altos gold mine).
The project hosts a National Instrument 43-101 compliant measured and indicated gold resource of 26.8 million tonnes at a grade of 0.88 gram per tonne (g/t), and an inferred gold resource of 19.7 million tonnes at a grade of 0.80 g/t.
Agnico-Eagle first announced its intention to purchase Grayd on 19 September 2011 when the two companies signed a definite agreement to that purpose.
The offer is subject to customary conditions, including that a minimum of 66Ôàö percent of the outstanding Grayd shares are tendered to the offer, which is open for acceptance until 5:00pm Toronto time on November 18, 2011 (unless the offer is extended or withdrawn).
Grayd’s board of directors has unanimously approved the acquisition and recommends that Grayd shareholders tender their shares to the offer. Their recommendation is supported by a fairness opinion provided by Desjardins Securities Inc.
