Gold miners Agnico Eagle, Kirkland Lake to merge

Gold miners Agnico Eagle Mines Ltd. and Kirkland Lake Gold Ltd. have agreed to merge.

Under the deal announced Tuesday, Kirkland Lake Gold shareholders will receive 0.7935 of an Agnico Eagle common share for each Kirkland Lake Gold common share held.

The new Agnico Eagle will be led by a combined board and management team including seven directors from Agnico Eagle and six from Kirkland Lake Gold.

Agnico Eagle CEO Sean Boyd will become executive chair of the board, while Kirkland Lake Gold CEO Tony Makuch will be chief executive of the combined company.

“The transaction creates a company with a strong platform of people, assets and financial resources to continue to build and operate a long term sustainable and self funding business,” Boyd said in a statement.

The deal requires approval by a two-third majority vote by Kirkland Lake Gold shareholders and a simple majority vote by Agnico Eagle shareholders.