What's Happening?
Fresnillo, recognized as the world's largest primary silver producer and Mexico's largest gold producer, has signed a definitive agreement to acquire all issued and outstanding common shares of Probe Gold for approximately C$780 million ($558.51 million).
This acquisition will be executed through a statutory plan of arrangement under the Business Corporations Act (Ontario). Probe shareholders are set to receive C$3.65 in cash per share, representing a 39% premium over Probe's closing share price on the Toronto Stock Exchange as of October 30, 2025. The Board of Directors of Probe has unanimously recommended the transaction, and key stakeholders, including Eldorado Gold, have entered voting support agreements with Fresnillo.
Why It's Important?
This acquisition is significant as it allows Fresnillo to expand its global precious metals portfolio beyond its core operations in Mexico. By acquiring Probe Gold, Fresnillo aims to reinforce its position as a leading global precious metals company and broaden its project pipeline. The transaction offers an attractive premium to Probe shareholders, validating the efforts of the Probe team in advancing the Novador project. This move is expected to enhance Fresnillo's strategic positioning in the global market, potentially increasing its influence and operational capacity in the precious metals sector.
What's Next?
The transaction is contingent on various approvals and is expected to close in the first quarter of 2026. As Fresnillo integrates Probe Gold's assets, it will likely focus on advancing the Novador project through permitting and into construction. Stakeholders will be closely monitoring the approval process and the subsequent integration of operations. The successful completion of this acquisition could set a precedent for further consolidation in the mining industry, as companies seek to expand their resource bases and operational capabilities.
