Highlights

  • Fresnillo gains strategic access to Canada’s Val d’Or Mining Camp, benefiting from a skilled local workforce and existing mining infrastructure.
  • The Novador Gold Project provides a resource base of 8 million ounces of gold, with potential production of over 200,000 ounces per year over a decade.
  • Probe’s extensive exploration land package of approximately 1,798 km² offers further growth opportunities for gold discovery and development.

Fresnillo plc (LSE:FRES) has confirmed an agreement to acquire 100% of Probe Gold Inc., marking a significant move into Canada’s Quebec gold mining sector. The all-cash deal values Probe at approximately CAD 780 million (around US$560 million), offering Probe shareholders a 24% premium over recent market prices.

Fresnillo Expands into Canadian Gold Market

Fresnillo has entered into a definitive arrangement agreement with Probe Gold to acquire all issued and outstanding shares for CAD 3.65 per share. The total equity value of the transaction is estimated at CAD 780 million. Probe Gold, listed on the Toronto Stock Exchange, holds ownership of the Novador Gold Project and the early-stage Detour Gold project in Quebec. Both sites are situated within the Val d’Or Mining Camp, a region with a long history of gold mining activity.

The transaction is structured as a statutory plan of arrangement under Ontario law and will require approval from Probe shareholders, as well as the Ontario Superior Court of Justice. A special meeting of shareholders is expected in January 2026, with completion anticipated in the first quarter of 2026. Upon closing, Probe will be delisted from the TSX.

Transaction Details and Approvals

The deal has received unanimous backing from the boards of both Fresnillo and Probe. Key Probe shareholders, representing 12% of the company’s shares, have entered voting support agreements to vote in favor of the acquisition. The arrangement agreement also includes standard provisions for deal protection, including a CAD 31 million termination fee under specific conditions.

Fresnillo plans to finance the acquisition using cash reserves, which totaled USD 1.8 billion as of June 30, 2025. The company has confirmed that its dividend policy will remain unchanged.

Future Development Plans

Once the acquisition is completed, Fresnillo intends to advance the Novador project, leveraging its technical expertise in mine development. The move aligns with Fresnillo’s strategic focus on early-stage gold projects and supports long-term objectives to enhance its portfolio in precious metals.

FRES shares were trading at GBX 2,286.00 per share at the time of writing on 31 October 2025.