• Fresnillo will pay C$3.65 per share in cash
• Fresnillo to advance Novador project post-acquisition
• Probe Gold's largest shareholder Eldorado Gold supports deal

Oct 31 (Reuters) - Mexican precious metals miner Fresnillo (FRES.L) , opens new tab has agreed to buy Canada's Probe Gold (PRB.TO) , opens new tab for C$780 million ($556 million) in cash, the companies said on Friday, marking the London-listed firm's expansion into North American markets.

The deal comes in the wake of a sharp rally in gold prices this year, as geopolitical tensions and economic uncertainty fuel investor demand for safe-haven assets such as bullion.

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Under the deal, Fresnillo will pay C$3.65 per share in cash, an almost 39% premium to Probe Gold's last closing price, and gain access to its 10 million ounces of gold resources, including the Novador project in Quebec.

"After nine years of steady progress advancing the Novador project, we believe this is an opportune moment to transfer the project to an experienced operator," Probe Gold CEO David Palmer said, noting Fresnillo had the expertise to advance the Novador project through permitting and construction.

Fresnillo, which operates eight mines in Mexico and has exploration projects in Peru and Chile, said it would take forward Novador's development once the transaction closes.

The Novador project, located in Quebec's Val d'Or mining camp, is Probe Gold's flagship project capable of producing over 200,000 ounces annually for more than a decade.

Fresnillo CEO Octavio Alvídrez said Mexico would remain central to its strategy while Probe Gold's assets would "meaningfully complement" its project pipeline.

Probe Gold's directors, officers and largest shareholder Eldorado Gold, collectively holding 12% of shares, have signed agreements with Fresnillo to vote in favour of the deal.

($1 = 1.4024 Canadian dollars)

https://www.reuters.com/business/miner-fresnillo-acquire-canadas-probe-gold-about-556-million-2025-10-31/