Fresnillo Expands Internationally with Probe Gold Acquisition
Fresnillo, Mexico’s leading precious metals miner, is entering Canada by acquiring Probe Gold for C$780 million ($556 million). This marks the company’s first expansion into the Canadian market. The deal includes 10 million ounces of gold reserves, including 8 million ounces at the Novador project in Quebec’s Val-d’Or Mining Camp. Fresnillo will also gain early-stage rights to the Detour Gold Quebec property, aiming to leverage its technical expertise and exploration experience.
Shares in Fresnillo rose 1.7% in London trading after the announcement, reflecting strong investor confidence. The company has seen stock growth of more than 250% this year, driven by a 50% rise in gold prices and a 70% increase in silver prices. Fresnillo currently operates eight mines and holds additional exploration projects in Peru and Chile.
Strategic Value of Probe Gold Assets
Fresnillo CEO Octavio Alvídrez said the acquisition aligns with the company’s strategy of disciplined, value-driven M&A. He emphasized that Probe Gold’s assets will significantly strengthen Fresnillo’s project pipeline. Mexico remains central to the company’s long-term growth, but the Canadian entry adds diversification.
Probe Gold CEO David Palmer stated that after nearly ten years of development, Novador requires a more experienced operator. The project is expected to produce over 200,000 ounces of gold annually for more than a decade. All Probe directors, officers, and key investors, including Eldorado Gold, support the transaction.
SuperMetalPrice Commentary:
Fresnillo’s acquisition of Probe Gold strategically positions the company in North America while leveraging its expertise in large-scale gold operations. This move strengthens its global gold portfolio and ensures continued production growth amid rising commodity prices. Investors should watch Fresnillo’s integration of Novador for potential market influence in Canadian gold production.
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