Agnico Eagle's Strategic Acquisition: Enhancing Value and Production

Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) has announced a definitive agreement to acquire O3 Mining Inc. (TSXV: OIII) (OTCQX: OIIIF) in a friendly transaction valued at approximately $204 million. The all-cash offer of $1.67 per share represents a 57% premium to O3 Mining's 20-day volume-weighted average price as of December 11, 2024. This strategic acquisition aligns with Agnico Eagle's regional strategy, further improving the production profile at their long-life, world-class asset.

O3 Mining's primary asset, the Marban Alliance property, is located near Val d'Or, in the Abitibi region of Québec, and is adjacent to Agnico Eagle's Canadian Malartic complex. The Marban deposit contains indicated mineral resources of 52.4 million tonnes grading 1.03 g/t gold for 1.7 million ounces of gold and inferred resources of 1.0 million tonnes grading 0.97 g/t gold for 32 thousand ounces of gold. The potential integration of the Marban Alliance property into Agnico Eagle's Canadian Malartic land package will create significant synergies by leveraging Agnico Eagle's regional operational expertise and existing infrastructure, including the Canadian Malartic mill and existing open pit workforce and equipment fleet.

Agnico Eagle's President and Chief Executive Officer, Mr. Ammar Al-Joundi, commented on the acquisition: "Consistent with our regional strategy, this transaction is a tuck-in of the Marban deposit to our Canadian Malartic complex. The Marban deposit is expected to be complementary to other 'Fill-the-Mill' opportunities at Canadian Malartic, further improving the production profile at a long-life world-class asset. Our extensive operation, exploration, and community experience is expected to enhance the value generated from the Marban Alliance property and unlock further potential at our Abitibi platform. We are looking forward to working with our partners and all stakeholders in the region as we continue to advance this opportunity."

O3 Mining's President and Chief Executive Officer, Mr. José Vizquerra, also expressed his support for the transaction: "The all-cash offer at a significant premium to market is an excellent outcome for our shareholders and is validation of the efforts made by the O3 Mining team. Having diligently advanced the Marban Alliance project over the past five years, the timing is right for O3 Mining to sell to a more experienced operator that can efficiently navigate the project through permitting and construction. This represents a substantial non-dilutive alternative to shareholders. We believe Agnico Eagle is the gold standard in the precious metals space – it not only has the financial strength and the mining expertise to advance the Marban Alliance project, but shares our commitment to work in partnership with stakeholders in a socially responsible manner. Today's Offer represents a significant milestone for O3 Mining, and I would like to thank our employees, shareholders, First Nations partners, community partners and the Province of Québec for their support over the years."

The acquisition is expected to create synergies in terms of cost savings, increased production, and improved operational efficiency through the integration of the Marban Alliance property with Agnico Eagle's Canadian Malartic complex. Agnico Eagle's regional operational expertise and existing infrastructure, such as the Canadian Malartic mill and open pit workforce and equipment fleet, can leverage the Marban Alliance property, creating unique synergies and enhancing the value generated from the Marban Alliance property while unlocking further potential at Agnico Eagle's Abitibi platform.



The transaction is subject to customary closing conditions, including the approval of at least 66.67% of the votes cast by O3 Mining shareholders at a special meeting expected to be held in January 2025. Agnico Eagle, through a wholly-owned subsidiary, Agnico Eagle Abitibi Acquisition Corp., intends to formally commence the Offer by mailing a take-over bid circular to O3 Mining shareholders on or about December 19, 2024, and O3 Mining's directors' circular is also expected to be mailed to O3 Mining shareholders on or about that date. The Offer will be open for acceptance for a minimum of 35 days following the date of commencement, with the Offer expected to remain open until 5:00 p.m. (Toronto time) on January 23, 2025.

In conclusion, Agnico Eagle's acquisition of O3 Mining's Marban Alliance property is a strategic move that aligns with their regional strategy, further enhancing the production profile at their long-life, world-class asset. The integration of the Marban Alliance property into Agnico Eagle's Canadian Malartic land package is expected to create significant synergies, improving cost savings, production, and operational efficiency. With the support of both companies' management teams and shareholders, this transaction is poised to generate substantial value for Agnico Eagle and its stakeholders.