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Fresnillo (FRES) investor relations material
Fresnillo M&A Announcement summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Deal rationale and strategic fit
Acquisition provides strategic entry into Canada, a tier-one mining jurisdiction with established infrastructure and skilled workforce, diversifying beyond Mexico.
Adds a high-quality, advanced gold development project and a large exploration land package in Quebec and Ontario, including the Novador project with over 8 million ounces of gold.
Strategic entry into the Val-d'Or Mining Camp, known for its rich gold mining history and infrastructure.
Complements existing operations and enhances long-term growth potential, supporting positioning as a leading precious metals company.
Aligns with a disciplined, value-driven M&A strategy focused on early-stage precious metals projects.
Financial terms and conditions
All-cash acquisition of all outstanding shares for CAD 780 million (approx. US$560 million), at CAD 3.65 per share, representing a 24% premium to Probe's 30-day VWAP.
Funded entirely with cash on hand; post-transaction cash balance projected at $2.2 billion.
C$31 million termination fee payable by Probe under certain circumstances.
No change to dividend policy, balancing growth and shareholder returns.
Synergies and expected cost savings
Significant exploration upside from 1,800 sq km of largely unexplored land adjacent to major gold operations.
Opportunity to leverage technical expertise to optimize and de-risk the Novador Gold Project, targeting over 200,000 ounces of annual gold production for 10+ years.
Potential for collaboration with neighboring mining companies in Quebec.
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