Fresnillo Strikes $560 Million Deal to Acquire Probe Gold

Strategic Insights -

Fresnillo, the world's biggest silver producer, has made a strategic move into Canada's gold mining sector with a $560 million deal to buy Probe Gold, a Toronto-listed company. The acquisition will enable Fresnillo to tap into Quebec's prolific Val d'Or mining camp, where Probe's main asset, the Novador Gold project, is estimated to contain 8 million ounces of gold. This deal marks Fresnillo's entry into the Canadian market, a world-class mining jurisdiction, and complements its existing pipeline of projects and prospects in Mexico.

Key Takeaways:

  • Fresnillo is acquiring Probe Gold, a Toronto-listed company, for $560 million, marking its strategic entry into Canada's gold mining sector.
  • The deal will give Fresnillo access to Probe's assets in Quebec's Val d'Or mining camp, including the Novador Gold project, estimated to contain 8 million ounces of gold.
  • Probe's assets complement Fresnillo's existing pipeline of projects and prospects in Mexico and will help return growth to the company's portfolio.
  • The deal does not generate synergies for Fresnillo, but it diversifies the company's exposure from Mexico, reducing dependence on a single jurisdiction.
  • The acquisition price of $3.65 per share is a 24% premium to Probe's 30-day average trading price before the deal was announced.

Statistics:

  • $560 million: The deal value of Fresnillo's acquisition of Probe Gold.
  • 8 million ounces: The estimated gold reserves at Probe's Novador Gold project.
  • 200,000 ounces per year: The potential annual gold production from the Novador Gold project for over a decade.
  • 47.5-54.5 million ounces: Fresnillo's estimated silver production this year.
  • 550,000-590,000 ounces: Fresnillo's estimated gold production this year.
  • $17 billion: Fresnillo's current market valuation.
  • 24%: The premium Fresnillo is paying to the 30-day average trading price of Probe Gold before the deal was announced.
  • $600 million: The approximate cash outlay by Fresnillo in the first quarter of 2026.

Sources:

  • "Fresnillo agrees $560m deal to buy Canadian gold miner Probe Gold," *Financial Times*, no date provided, unknown author.
  • "Fresnillo signs deal to buy Probe Gold in $560M deal," *Mining Weekly*, no date provided, unknown author.
  • *Press Release*: "Fresnillo agrees $560 million deal to acquire Probe Gold," Fresnillo, no date provided, unknown author.