- Agnico Eagle Mines (TSX/NYSE:AEM), one of the world’s largest gold mining companies, has committed to a C$57.15 million investment in Quebec-based explorer Radisson Mining Resources (TSXV:RDS).
- Radisson’s flagship O’Brien project hosts a more than 2-million-ounce resource in the prolific Abitibi region.
- Radisson Mining stock last traded at C$1.01, adding 71.19 per cent year-over-year and 236.67 per cent since 2021.
Agnico Eagle Mines (TSX/NYSE:AEM), one of the world’s largest gold mining companies, has committed to a C$57.15 million investment in Quebec-based explorer Radisson Mining Resources (TSXV:RDS), whose flagship O’Brien project hosts a more than 2-million-ounce resource in the prolific Abitibi region.
The proceeds will go towards an underground exploration program on the preliminary economic assessment-stage project, during which Radisson will gather geological and geotechnical data to inform future mining scenarios. Radisson’s 140,000-metre step-out drilling program remains ongoing to delineate the O-Brien resource’s growth potential.
This article is a journalistic opinion piece which has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
The non-brokered private placement will grant Agnico Eagle a 10.45 per cent stake in the company on a non-diluted basis, or 14.9 per cent on a partially diluted basis. This breaks down into 53.42 million Radisson units priced at C$1.07, with each unit consisting of one Class A common share and one-half of one share purchase warrant. Each warrant is exercisable for one share priced at C$1.39 for 60 months from issuance, subject to acceleration after 24 months, should Radisson shares reach a volume-weighted average price of C$1.85 for 20 consecutive trading days.
According to Monday’s news release, Agnico will be granted numerous investor rights, including nominating a director to Radisson’s board, or two directors should the board increase to eight directors or higher, as well as participating in future equity offerings to maintain its stake. Radisson will, in turn, face limits on property sales, offtakes and numerous other transactions through 2028.
Closing remains subject to customary conditions, including approval from the TSX Venture Exchange.
Leadership commentary
“We are very happy to welcome Agnico Eagle as a significant shareholder for the next stage of exploration and development at the O’Brien gold project. This is a milestone step for Radisson. The advanced underground exploration program that will now commence is designed to extend our understanding of potential mining conditions at O’Brien, including the continuity of mineralization, the geotechnical setting, potential mining methods and processing criteria. It also establishes a development schedule for O’Brien. As this underground work advances, our ongoing 140,000-metre surface drill program of exploration step-outs will continue as planned, funded from our existing cash resources. Recent results have indicated extensive gold mineralization with good continuity beneath the former O’Brien mine and the current mineral resources to at least 1.9 kilometres depth. In May of this year, we announced our intention to extend our drilling ambition to 2.5 kilometres depth. Now, this investment by Agnico Eagle will fund the first modern underground access at O’Brien, which will assist us in developing the project’s full potential,” Matt Manson, President and Chief Executive Officer of Radisson Mining Resources, said in a statement.
About Radisson Mining Resources
Radisson Mining Resources is a gold explorer active in the Abitibi region of Quebec.
Radisson Mining stock (TSXV:RDS) last traded at C$1.01, adding 71.19 per cent year-over-year and 236.67 per cent since 2021.
Join the discussion: Find out what investors are saying about these gold mining stocks on the Agnico Eagle Mines Ltd. and Radisson Mining Resources Inc. Bullboards and make sure to explore the rest of Stockhouse’s stock forums and message boards.
