By Travis McPherson of CEO.CA

Agnico Eagle Mines has agreed to buy Vancouver-based junior Cayden Resources (CYD:TSXV) for $205 million in cash and stock in an announcement after market today that may come as a shock to Goldcorp.

Under the agreement, which is supported by Cayden’s management and board representing 19.8% of the votes, each Cayden shareholder will be entitled to 0.09 of an Agnico Eagle share and CDN$0.01 in cash.  Agnico Eagle (AEM:TSX) closed today at $37.08 per share (market cap of nearly $8 billion).

The offer represents $3.79 per share and a 42.5% premium to Cayden’s 30-day VWAP.

Investors of Cayden’s last financing in April ($9 million bought deal at $1.70 per share) are happy.  They are up 123% in just 5 months.

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