- Agnico Eagle Mines (TSX:AEM) invests C$12.48M in Osisko Metals (TSX:OM), acquiring 26M common shares at $0.48 per share through a private placement
- Ownership stake rises to 9.85 per cent (non-diluted) and 12.49 per cent (partially diluted), strengthening Agnico Eagle’s ownership position in Osisko
- Amended investor rights agreement grants Agnico Eagle participation rights in future financings and potential board nomination rights upon meeting ownership thresholds
- Agnico Eagle stock (TSX:AEM) last traded at C$229.15 and Osisko Metals stock (TSX:OM) last traded at $0.68
Agnico Eagle Mines (TSX / NYSE:AEM) has acquired 26 million common shares of Osisko Metals (TSX:OM) Incorporated through a non-brokered private placement valued at approximately C$12.48 million. The shares were purchased for $0.48 per share.
The investment aims to align with Agnico Eagle’s strategy of securing ownership positions in projects with strong geological potential. The company emphasized that while it remains focused on advancing its portfolio of high-quality internal growth projects, it continues to complement its pipeline through selective equity investments.
Before the transaction, Agnico Eagle held 41.2 million common shares and 20.6 million warrants of Osisko, representing about 6.71 per cent of Osisko’s outstanding shares on a non-diluted basis. Following the placement, Agnico Eagle’s ownership has increased to 67.2 million shares and 20.6 million warrants, equating to roughly 9.85 per cent on a non-diluted basis and 12.49 per cent on a partially diluted basis.
As part of the deal, Agnico Eagle and Osisko amended their investor rights agreement, granting Agnico Eagle participation rights in future equity financings and the ability to maintain ownership thresholds. The agreement also includes conditional board nomination rights, though Agnico Eagle currently has no plans to exercise them.
The company noted that future transactions involving Osisko securities will depend on market conditions and business priorities.
About Agnico Eagle Mines and Osisko Metals
Agnico Eagle is the second-largest gold producer in the world. The company owns producing operations in Canada, Australia, Finland and Mexico, in addition to a high-potential pipeline of exploration and development projects. It has declared a cash dividend every year since 1983.
Osisko Metals is a Canadian exploration and development company creating value in the critical metals space, specifically copper and zinc.
Agnico Eagle stock (TSX:AEM) last traded at C$229.15 and has risen more than 100 per cent since the year began. Osisko Metals stock (TSX:OM) last traded at $0.68 and has climbed more than 47 per cent since the start of the year.
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