De Grey Mining (ASX:DEG) has denied media reports suggesting that Canadian mining giant Agnico Eagle has made a buyout proposal. In a statement released on Sept. 27 morning following a trading pause, the company addressed an article published in The Australian, clarifying that the claims are "incorrect" and "pure speculation."
Despite a policy of refraining from commenting on rumours, De Grey felt compelled to respond to the circulating speculation.
Agnico Eagle, which boasts a market capitalization of approximately $63 billion and a minor Australian presence through the Fosterville mine in Victoria, has previously indicated interest in expanding into Western Australia.
The speculation surrounding Agnico has intensified in recent months amidst heightened deal activity in the Western Australian gold mining sector.
Multiple sources informed The West Australian that Agnico was pursuing Karora Resources before Westgold Resources ultimately acquired the company. Additionally, there have been unconfirmed reports of Agnico exploring the Telfer mine, which was recently sold to Greatland Gold.
Agnico Eagle has refrained from commenting on the rumours.
As for De Grey Mining, the company is poised to commence construction on its Hemi gold mine in the Pilbara by the end of this year, pending a final investment decision.
Hemi is projected to produce 553,000 ounces of gold within its first five years of operation, beginning in 2026.
The development of the mine is fully financed after De Grey secured $1 billion in debt financing in June, supplementing its existing cash reserves of $850 million.
At the time of reporting, De Grey Mining's share price was $1.35.