Mentioned:
Agnico Eagle is taking an equity stake in a publicly traded gold exploration company in Canada. But, why?
What’s happening:
- Agnico Eagle (NYSE: AEM) has committed to making a $57.2M CAD strategic investment into Radisson Mining (TSXV: RDS)
By the numbers:
- Agnico Eagle will own roughly 10.45% of Radisson Mining upon successful
Why it matters:
- Radisson Mining’s flagship property known as the O’Brien-Gold Project is one of the highest-grade past-producing gold mines in Quebec
Going deeper:
- Radisson Mining has publicly stated they will use the new capital from Agnico Eagle’s investment to advance an underground exploration program at the O’Brien-Gold Project to evaluate potential mining options and future development possibilities
- Agnico Eagle has also negotiated an investor rights agreement with Radisson Mining that will allow them to nominate one director to Radisson Mining’s board and participate in future equity raises to maintain ownership of up to 14.9% on a partially-diluted basis
The intrigue:
- Agnico Eagle has been making a flurry of bets on gold projects lately, including previously making a strategic equity investment in Cascadia Minerals (TSXV: CAM) and committing $2.4B USD to build a new gold mine at the Hope Bay project located in Nunavut
