The Doris mine at Agnico Eagle’s Hope Bay project in Nunavut. Credit: Agnico Eagle Mines
Agnico Eagle Mines (TSX: AEM; NYSE: AEM), Canada’s largest gold miner by output and market value, has sold its 11% stake in Orla Mining (TSX: OLA; NYSE: ORLA) for nearly C$561 million ($405 million).
The major sold 38 million shares in the mid-tier gold producer at C$14.75 each via the TSX, the companies said on Tuesday. The transaction puts an end to Agnico’s interest in Orla, which it had seeded in 2017. Orla – which has two producing assets, the Camino Rojo oxide mine in central Mexico and the Musselwhite mine in Ontario – forecast consolidated gold output this year to hit 265,000-285,000 ounces.
National Bank of Canada said the sale adds to Agnico’s cash on hand, likely to hit $2.3 billion by year’s end, which with spiking gold prices allows the company to increase share buy-backs beyond a…
