Agnico Eagle Mines (TSX: AEM; NYSE: AEM) is investing $8.2 million in First Nordic Metals (TSX-V: FNM), acquiring approximately 28 million common shares at $0.2925 per share. The transaction, expected to close by July 22, 2024, will raise Agnico’s ownership in First Nordic to approximately 13.25% from its current 0.75%.
The investment marks a strategic move by Agnico Eagle to satisfy outstanding payments owed by FNM’s subsidiary, Gold Line Resources, under a purchase agreement. Following the transaction’s closure, Agnico Eagle and First Nordic will establish an investor rights agreement granting Agnico Eagle the option to participate in future equity financings and potentially nominate board members.
First Nordic is finalizing its acquisition of the Oijärvi gold project in Finland. This acquisition includes the Kylmäkangas gold deposit, characterized by high-grade resources and potential for expansion.
Taj Singh, First Nordic’s president and CEO said, “Oijärvi has all the key attributes FNM looks for in a high-quality project – high grades, significant growth potential and a great location. We are thrilled to welcome Agnico Eagle and look forward to having them as a significant shareholder.”
The Kylmäkangas project boasts an indicated mineral resource of 159,000 oz. of gold equivalent and an inferred resource of 152,000 oz., with ongoing exploration indicating further expansion opportunities. Historical drilling has identified additional zones of mineralization.
In Sweden, First Nordic flagship asset, the Barsele gold project, operates as a joint venture with Agnico Eagle, reflecting their collaborative approach in Scandinavian mining ventures. The partnership enhances First Nordic’s operational capabilities and underscores Agnico Eagle’s commitment to expanding its European portfolio.
For more information, visit www.AgnicoEagle.com and www.FNMetals.com.
