In a bold move to expand its global mining footprint, Fresnillo PLC, the world’s largest silver producer and Mexico’s top gold miner, announced Friday that it has agreed to acquire Probe Gold Inc. in an all-cash deal valued at CA$780 million (US$556 million). The transaction, guided by Goodmans LLP for Fresnillo and Stikeman Elliott LLP for Probe Gold, marks Fresnillo’s first major foray into the Canadian mining landscape.
Fresnillo said the acquisition provides a “strategic entry into Canada — a world-class Tier 1 mining jurisdiction,” and will result in Probe Gold’s delisting from the Toronto Stock Exchange once the merger is complete.
Strategic Expansion and a Premium Offer
Under the agreement, Fresnillo will pay CA$3.65 per share, representing a 39% premium over Probe Gold’s closing price on Thursday. The offer, which is not subject to any financing conditions, underscores Fresnillo’s financial strength — the company reported $1.8 billion in cash reserves as of June 30.
“After extensive due diligence, we concluded that Probe Gold perfectly aligns with our pursuit of high-quality exploration projects,” Fresnillo CEO Octavio Alvídrez said in a statement. He added that the acquisition positions Fresnillo to diversify geographically and strengthen its gold production capabilities.
