Mexican precious metals miner Fresnillo (LON: FRES) is acquiring Canada’s Probe Gold (TSX: PRB) for C$780 million ($556 million) in cash, marking the company’s first entry into North America.
Fresnillo will pay C$3.65 per share, representing a 39% premium to Probe Gold’s last closing price and 24% above its 30-day average as of Oct. 30. The deal gives Fresnillo access to Probe’s 10 million ounces of gold reserves, including 8 million ounces at the Novador project in Quebec’s Val-d’Or Mining Camp.
The acquisition also includes the early-stage Detour Gold Quebec property, which Fresnillo said could benefit from its technical expertise and exploration experience.
Shares in Fresnillo, the world’s largest silver producer and one of Mexico’s biggest gold miners, rose 1.7% to 22.86p in early London trading. The stock has surged more than 250% this year, buoyed by a 50% rise in gold prices….
