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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.

Probe Gold’s Assets and Shareholder Support

Probe Gold, headquartered in Quebec, holds two flagship properties — the Novador Gold Project and the Detour Gold Project, both fully owned and located in one of Canada’s most resource-rich regions. The company boasts CA$47 million in cash and no debt, giving Fresnillo a clean acquisition target with promising exploration upside.

Probe Gold’s CEO, David Palmer, praised the deal, calling it “an excellent outcome” for shareholders that offers “immediate liquidity and removes future market and construction risks.”

“After nine years of advancing Novador, this is the right moment to hand it to a seasoned operator with the expertise to take it through permitting and into construction,” Palmer said.

The board of directors unanimously endorsed the deal, following financial guidance from Canaccord Genuity Corp. and CIBC World Markets Inc. Major shareholders, including Eldorado Gold Corp., which collectively hold about 12% of Probe’s shares, have already pledged support.

A New Frontier for Fresnillo

Fresnillo currently operates eight mines and four advanced exploration projects in Mexico, with additional exploration interests in Peru and Chile. This acquisition will mark its first expansion into the Canadian market, solidifying its status as a global mining powerhouse.

The deal, expected to close by March, still requires court approval and a two-thirds majority vote from Probe shareholders. If approved, it will also include a CA$31 million break fee payable under certain undisclosed conditions.

As the mining world watches closely, Fresnillo’s move signals not just an acquisition — but a strategic leap into one of the safest and richest gold territories on Earth, setting the stage for a new era in the company’s global growth ambitions.