Agnico Eagle Mines Ltd. said on Monday that it would pay $205-million to buy Cayden Resources Inc. for its gold properties in Mexico, where the Canadian miner already operates.
If successful, this will be the second acquisition for Agnico this year. In April, the Toronto-based company teamed up with another Canadian gold miner to buy the large Canadian Malartic mine in Quebec.
The offer of 0.09 Agnico shares and 1 cent for each Cayden share needs approval from Cayden shareholders as well as Mexican regulators.
The cash and stock bid is worth about $3.35 a share and represents a 14-per-cent premium to Cayden's share price based on Monday's closing prices.
The proposal is one of a handful of announced deals this year in the Canadian mining sector, which has struggled to contain costs amid the slump in metal prices.