Cayden shareholders will receive .09 of an Agnico Eagle share and C$0.01 for each Cayden share. The total number of Agnico shares to be issued under the arrangement will be 4.86 million shares, which is based on the number of Cayden shares currently outstanding and will equal about 2.3% of the total outstanding Agnico Eagle shares.
Cayden has 100% interest in two properties, one is the El Barqueňo property, which stretches more than 41,000 hectares in the Guachinango gold district in Jalisco, Mexico. The El Barqueňo property holds several gold bearing zones that have been identified by trenching and drilling.
Tim Haldane, the Senior Vice-President of Operations said in a press release, "From a technical perspective, El Barqueňo bears a lot of similarities to Pinos Altos in the early days. 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."
The other property Cayden offers Agnico is the Morelos Sur property, approximately 13,000 hectares in the Guerrero gold belt in Guerrero, Mexico. Preliminary exploration by Cayden has revealed gold in the soil at La Magnetita and Tenantla.
Finalization of the transaction will be subject to approval by Cayden Security Holders as well as Mexican anti-trust and other regulatory approvals. Under specific circumstances, if the deal is to fall through, a termination fee of $5.7m will be paid by Cayden to Agnico.
Cayden Resources is a Canadian exploration company that operates primarily in two jurisdictions in Mexico.
Agnico Eagle is a Canadian mining company that has been in operation since 1957. Agnico currently operates nine mines in Canada, Finland, and Mexico. Every year since 1983, Agnico Eagle Mining has declared a cash dividend.
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