Gold miner Agnico Eagle has made a C$13.1-million strategic investment in exploration and development company Rupert Resources, which owns a project about 50 km from a mine that the Canadian midtier producer owns.
Agnico Eagle subscribed for 15 391 605 units of TSX-V-listed Rupert in a nonbrokered private placement at a price of $0.85 a unit for total consideration of C$13.08-million.
On closing of the private placement, Agnico Eagle will own about 9.9% of the issued and outstanding common shares of Rupert on a nondiluted basis and 16.1% of the issued and outstanding common shares on a partially-diluted basis.
“The strategic investment by Agnico, one of the world’s premier gold mining companies and the operator of the Kittila mine, Europe’s largest gold mine located 50 km from Rupert’s Pahtavaara project, will help unlock the potential of our ground and validates Rupert’s exploration in the region.
“The new investment is expected to fund Rupert’s exploration campaign for at least 12 months and may lead to synergies in the event Rupert’s projects progress to the development stage,” commented Rupert CEO James Withall.
Agnico Eagle and Rupert had agreed to enter into an investor rights agreement on closing of the private placement pursuant to which Agnico Eagle would be granted certain rights, provided Agnico Eagle maintained certain ownership thresholds in Rupert.