Vancouver-based Grayd Resources Corp. (TSXV: GYD) has agreed to a $275 million takeover bid by Agnico-Eagle Mines Ltd. (TSX: AEM).
Agnico-Eagle, a Canadian miner headquartered in Toronto, is a gold producer with operations in Canada, Finland, Mexico and the U.S.
Grayd Resources is a gold and silver explorer and developer focused primarily in Mexico.
Grayd owns the La India project in the Mulatos Gold Belt of Sonora, Mexico, approximately 70 kilometres northwest of Agnico-Eagle's Pinos Altos gold mine.
Grayd also recently discovered the Tarachi gold porphyry prospect 10 kilometres north of the La India project.
Sean Boyd, vice-chairman and CEO of Agnico-Eagle, said “This acquisition is consistent with our long-term strategy of building value by bringing our mine development and exploration skills to promising early stage gold deposits and projects.
“The Grayd properties will benefit from the construction and operating experience gained at our Pinos Altos mine.”
Marc Prefontaine, president and CEO of Grayd, said, “Thanks to the hard work and dedication of our team, our Mexican properties have advanced to the stage that it is time for us to join with a fully funded and well established mine builder like Agnico-Eagle for their final stage of development into gold mines.”
At press time, Grayd’s shares were trading up 40% or $0.78 to $2.73.
Jennifer Harrison
Twitter: JHarrisonBIV