Agnico Eagle To Buy Cayden Resources For About C$205 Mln

(RTTNews) - Agnico Eagle Mines Ltd. (AEM, AEM.TO) said Monday that it has entered into an agreement to buy Cayden Resources Inc. (CYD.V) for total consideration of about C$205 million, or about C$3.79 per share.

Under the deal, Cayden shareholders will be entitled to receive 0.09 of an Agnico Eagle share and C$0.01 for each Cayden common share.

All of the directors and officers of Cayden, who hold in the aggregate about 19.8% of the issued and outstanding Cayden shares on a fully-diluted basis, have entered into support agreements with Agnico Eagle pursuant to which they have agreed, among other things, to support the transaction and vote their Cayden securities in favour of the deal.

The maximum number of shares issuable by Agnico Eagle under the offer will be about 4.86 million, or about 2.3% of Agnico Eagle's outstanding shares.

Cayden owns, has options to acquire or has staked, concessions constituting a 100% interest in the El Barqueno Property, which covers approximately 41,000 hectares in the Guachinango gold district in Jalisco State, Mexico. El Barqueno hosts a significant epithermal bonanza type gold vein and disseminated stockwork system. Several gold bearing zones have been identified by drilling and trenching in an area approximately 13.5 km long by 4.7 km wide.

Cayden also owns a 100% interest in the Morelos Sur Property, which covers approximately 13,000 hectares in the Guerrero gold belt in Guerrero State, Mexico. The deal is expected to close before the end of 2014.

Pursuant to the deal, Cayden is subject to customary non-solicitation covenants. In the event a superior proposal is made to Cayden, Agnico Eagle has a five business day right to match such proposal. Under certain circumstances where the deal is not completed, Cayden has agreed to pay a termination fee of C$5.7 million to Agnico Eagle.