UPDATE 1-Miner Agnico-Eagle to buy Mexico-focused explorer Cayden
(Adds transaction details, CEO quote)
Sept 8 (Reuters) - Canadian gold miner Agnico-Eagle Mines Ltd has agreed to buy Cayden Resources Inc, a gold exploration company with projects in Mexico, for C$205 million ($186.84 million) in shares and cash, the two companies said on Monday.
The offer price, equal to C$3.79 per Cayden share based on Agnico's average share price in the 30 days ended Sept. 5, represents a 42.5 percent premium to Cayden's stock price in the same period, the companies said.
Cayden's shares closed at C$2.95 on the TSX Venture Exchange on Monday.
"This acquisition is consistent with our long-term strategy of acquiring promising, early-stage gold projects where we can add value through focused exploration and mine building", said Sean Boyd, president and chief executive officer of Agnico.
Agnico is a mid-sized gold miner with operations in Canada and Mexico.
Cayden's two flagship projects in Mexico are the El Barqueño and Morelos Sur projects, which are in the exploration phase.
Under the deal, Cayden shareholders will be entitled to receive nine-hundreths of an Agnico share plus 1 Canadian cent for each Cayden common share.
Directors and officers of Cayden, who own around 19.8 percent of its shares, support the transaction, the two miners said in a statement.
The maximum number of shares that Agnico will issue under the offer is about 4.86 million, or approximately 2.3 percent of its outstanding shares.
(1 US dollar = 1.0972 Canadian dollar) (Reporting by Nicole Mordant in Vancouver; Editing by David Gregorio and Jonathan Oatis)
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