Fresnillo, a prominent player in the global precious metals industry, has recently made headlines with its acquisition of Probe Gold for approximately C$780m ($558.51m). This strategic move will not only bolster Fresnillo’s existing operations in Mexico but also pave the way for the company to expand its precious metals portfolio on a global scale.
The acquisition, facilitated through a statutory plan of arrangement under the Business Corporations Act (Ontario), will see Probe shareholders receiving C$3.65 in cash for each share they own. This offer represents a significant 39% premium over Probe’s closing share price on the Toronto Stock Exchange (TSX) as of 30 October 2025, and a 26% premium over the volume-weighted average price of Probe shares on the TSX for the 20 trading days ending 30 October 2025.
The Board of Directors of Probe has unanimously endorsed the transaction, urging shareholders to vote in favor of the deal. Additionally, all directors and officers of Probe, along with Eldorado Gold, who collectively hold around 12% of Probe’s shares, have entered into voting support agreements with Fresnillo. These agreements stipulate their commitment to vote in favor of the acquisition.
Fresnillo, a dual-listed company on the London and Mexican Stock Exchanges, is renowned as the world’s largest primary silver producer and Mexico’s largest gold producer. With eight operational mines and four advanced exploration projects in Mexico, as well as exploration interests in Peru and Chile, Fresnillo is poised to strengthen its position as a leading global player in the precious metals sector.
The transaction, subject to various approvals, is anticipated to close in the first quarter of 2026. Probe CEO and director David Palmer expressed his satisfaction with the deal, emphasizing the premium offered to shareholders and the opportunity for Probe’s Novador project to be taken forward by a seasoned operator like Fresnillo.
In a related development, Fresnillo faced operational challenges at Industrias Peñoles’ Sabinas mine last year, impacting silver output. This acquisition of Probe Gold marks a strategic move for Fresnillo to diversify its project pipeline and reinforce its foothold in the global precious metals market.
For more details on Fresnillo’s agreement to acquire Probe Gold, visit Mining Technology, a trusted source for industry news and insights. As with any investment decision, it is advisable to seek professional advice before making any significant financial commitments.
