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Creating a high-quality senior gold producer

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NUNAVUT

In September, Agnico Eagle announced a merger with Kirkland Lake Gold. 

In the North, Agnico Eagle operates several gold mines in Nunavut: the Meadowbank complex north of Baker Lake, Meliadine near Rankin Inlet, and the Hope Bay property in Cambridge Bay, as well as mines in Northern Quebec. 

The merger will establish the new Agnico Eagle as the gold industry’s highest-quality senior producer, with the lowest unit costs, highest margins, most favourable risk profile and industry-leading best practices in environmental, social and governance. The new company is expected to have $2.3 billion of available liquidity, a mineral reserve base of 48 million ounces of gold, (969 million tonnes at 1.53 grams per tonne), and an extensive pipeline of development and exploration projects to drive sustainable, low-risk growth. 

The merger solidifies the new Agnico Eagle as Canada’s leading gold producer, with expected annual production in the country of approximately 2.5 million ounces in 2021. It will create a best-in-class gold mining company operating in one of the world’s leading gold regions, the Abitibi-Greenstone Belt of northeastern Ontario and northwestern Quebec. 

The transaction is expected to close in December or in the first quarter of 2022. 

The new company will operate as Agnico Eagle. Sean Boyd, Agnico Eagle’s president and CEO, becomes executive chair of the board, while Tony Makuch, president and CEO of Kirkland Lake Gold, becomes the new CEO. 

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