11:22 AM EST, 01/17/2025 (MT Newswires) -- O3 Mining ( OIIIF ) shareholder GreenAsh Partners, which has a 2.7% stake in the company, on Friday said it is "perplexed at what appears to be the deeply discounted valuation of the proposed takeover of O3 Mining ( OIIIF ) and a pricing level which may deliver no material advantage to Agnico Eagle."

Agnico Eagle Mines ( AEM ) in December said it agreed to acquire O3 Mining ( OIIIF ) for $1.67 cash per share, a 50% premium to the company's shares at the time. The offer valued the company at $204 million.

Canaccord research last November estimated O3's net present value (NPV) at $1.6 billion, GreenAsh said, adding that a 2022 pre-feasibility study of O3 Mining ( OIIIF ) estimated a $639 million NPV for O3's Marban project, using a US$1,900 gold price input, below the current gold price of US$2,700.

If O3 shareholders agreed with the assessment of undervaluation, Agnico Eagle is not likely to receive meaningful tenders beyond the 39% already committed, as it requires the agreement of 66 2/3 shareholders, GreenAsh concluded.

O3 Mining ( OIIIF ) was last seen up $0.01 to $1.67 on the TSX Venture Exchange.

Price: 1.67, Change: +0.01, Percent Change: +0.60