31st Oct 2025 09:31
(Alliance News) - Fresnillo PLC on Friday announced it has acquired Canadian gold exploration company Probe Gold Inc.
The Mexico-focused silver and gold mine operator said the total equity value is worth approximately CAD780 million, equivalent to approximately USD560 million, from an all-cash consideration of CAD3.65 per share.
Fresnillo said the consideration provides a 24% premium compared to the stock's 30-day volume weighted average trading price per share on the Toronto Stock Exchange.
Probe is the 100% owner of the Novador Gold project and the early-stage Detour Gold project, both located in Quebec, Canada.
Fresnillo said it will look to advance the development of the Novador project, which is currently undeveloped, when the transaction is complete.
The company said it will add a resource base of 10 million ounces of gold to the Novador project, which it says has the potential to produce over 200,000 ounces per annum over 10 years.
Fresnillo said it expects to finance the acquisition with existing cash on hand, which stood at USD1.8 billion as of June 30.
The transaction will be subject to the approval of just over 66% of the votes cast by Probe shareholders and "a simple majority of the votes cast by minority shareholders."
The company announced no change to its existing dividend policy as a result of the transaction.
Fresnillo Chief Executive Octavio Alvidrez said: "We are delighted to announce the acquisition of Probe Gold, a company that fits our pursuit of high-quality exploration projects. This acquisition is consistent with our disciplined approach to M&A we have consistently set out over time.
"It meets our strict criteria of having a sizeable resource base with upside optionality in a region with mining history, skilled personnel, and existing infrastructure. We carried out extensive due diligence to determine the attractiveness of this investment to both minimise risk and ensure the acquisition has the potential to add considerable longer term value for our shareholders."
Shares in Fresnillo rose 0.3% to 2,254.00 pence each on Friday morning in London.
By Roya Shahidi, Alliance News reporter
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