Precious metals giant Fresnillo Plc has completed its $555m acquisition of Probe Gold following all the necessary approvals, marking its first entry into Canada and the prolific Val d'Or gold mining district in Quebec.
Fresnillo said it has now received the required shareholder, court and regulatory sign-offs to settle the CAD$770m deal using existing cash on hand.
The miner, which holds mining concessions and exploration projects in Mexico, Peru and Chile, will add 10m ounces to its gold resource base through the acquisition of Probe and its flagship Novador project.
Novador, one of Canada's top undeveloped multimillion ounces projects, is said to be an advanced asset capable of producing over 200,000 ounces of gold per year for over a decade.
The deal also gives Fresnillo access to a 1,798km2 land portfolio, which includes the Detour Gold Quebec project.
"We are delighted to complete the acquisition of Probe. As we announced previously, this acquisition is consistent with our disciplined approach to M&A and meets our strict criteria of having a sizeable resource base with upside optionality in a region with mining history, skilled personnel, and existing infrastructure," said chief executive Octavio Alvídrez.
"We are excited that our first project outside of Mexico is in Canada, an outstanding mining jurisdiction with a global reputation for responsible development, and in the Val d'Or region with its proud history of mining."
Fresnillo will now start work to advance the development of Novador project, but said it will also explore Probe's land package "to unlock further value for stakeholders".