LONDON (ShareCast) - (Sharecast News) - Precious metals miner Fresnillo has agreed to acquire Canadian exploration company Probe for approximately CAD $780m (£424m) in an all-cash deal.
Fresnillo said on Friday that the acquisition marked a "strategic entry into Canada" and the "prolific Val d'Or Mining camp" in Quebec, which has a long-standing history of gold mining and continued production growth.

It also stated that the acquisition added "a large resource base" of 10m ounces of gold, including 8m ounces of gold at its flagship project, Novador.

The FTSE 100-listed firm stated the addition of Probe to the wider group offered "substantial exploration upside" through its "large, underexplored land package of approximately 1,798km2".

Fresnillo added that the consideration represented a premium of 24% to Probe's 30‐day volume weighted average trading price on the Toronto Stock Exchangefor the period ending 30 October.

Chief executive Octavio Alvídrez said: "While Mexico will remain central to our operating and growth strategy, Probe's assets will meaningfully complement our existing pipeline of projects and prospects. We are confident that the Novador project, together with our advanced exploration projects in Mexico, will underpin Fresnillo's long term future, further positioning us as one of the leading precious metals companies in the world."





Reporting by Iain Gilbert at Sharecast.com

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE