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Mergers and acquisition (M&A) activity has been in a bear market over the last couple of years as high interest rates and governmental scrutiny in certain sectors held back corporate deal making. As interest rates have begun their descent and a new roaring bull market erupted after the U.S. presidential election, M&A interest has also begun to thaw.

Today, %AgnicoEagleMines Limited (NYSE: $AEM ) (TSX: AEM) and %O3Mining Inc. (TSXV: $OIII ) (OTC: $OIIIF ) announced that they have entered into a definitive support agreement, pursuant to which Agnico Eagle has agreed to offer to acquire, directly or indirectly, all of the outstanding common shares of O3 Mining for $1.67 per Common Share in cash by way of a take-over bid. The Offer is valued at approximately $204 million on a fully diluted in-the-money basis.

The all-cash offer of $1.67 per share represented a 58% premium to O3 Mining's closing price on December 11, 2024, and was unanimously recommended by Board and Special Committee of O3 Mining and supported by shareholders representing 22% of outstanding shares of O3 Mining.

O3 Mining's primary asset is its 100%-owned Marban Alliance property located near Val d'Or, in the Abitibi region of Québec, and is adjacent to Agnico Eagle's Canadian Malartic complex. The Marban Alliance property includes the Marban deposit, which is an advanced exploration project that could support an open pit mining operation similar to Agnico Eagle's Barnat open pit operations at the Canadian Malartic complex. O3 Mining has estimated that the Marban pit contains 52.4 million tonnes of indicated mineral resources grading 1.03 g/t gold for 1.7 million ounces of %Gold and 1.0 million tonnes of inferred mineral resources grading 0.97 g/t gold for 32 thousand ounces of gold (effective date of February 27, 2022). O3 Mining also owns 100% of the Alpha property and 100% of the Kinebik property.

The news sent shares of OIII soaring over 54%, currently at $1.64 in mid-morning trading.


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