Agnico-Eagle Hikes Cash Portion of Grayd Resource Offer

Gold mining giant Agnico-Eagle Mines Ltd. is increasing the cash portion of a takeover offer for Grayd Resource Corp., another gold miner, which hold assets in Mexico.

Agnico-Eagle, based in Toronto, said Thursday the amount of cash it's offering for all shares of Grayd will be doubled, to $183 million.

Grayd's directors are recommending that shareholders accept the Agnico-Eagle offer.

The maximum number of Agnico-Eagle shares available remains unchanged from the original Oct. 13 offer at about 2.7 million.

As a result of this amendment, shareholders of Grayd who prefer cash consideration will be able to receive a greater proportion of the offer price in cash, Agnico-Eagle said in a statement.

Shares of Agnico-Eagle slipped 21 cents in premarket action to $46.51.