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TORONTO - Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM), a senior gold mining company with a market capitalization of $53.2 billion and impressive 92% return over the past year, has announced its subscription for 20,770,000 units of Cartier Resources Inc. in a non-brokered private placement, with an expected closing date around April 10, 2025. According to InvestingPro data, the company is currently trading near its 52-week high of $107.88. The deal, priced at C$0.13 per unit, totals C$2,700,100 and will increase Agnico Eagle’s ownership in Cartier.
Each unit in the private placement comprises one common share of Cartier and one common share purchase warrant, which allows the holder to acquire an additional common share at C$0.18 within five years, subject to acceleration under certain conditions.
Prior to this transaction, Agnico Eagle held approximately 26.6% of Cartier’s issued and outstanding common shares and 28.0% on a partially-diluted basis, assuming the exercise of existing warrants. Post-closing, and considering Cartier’s concurrent private placement offering, Agnico Eagle’s stake is expected to rise to about 27.7% undiluted and approximately 32.2% on a partially-diluted basis.
The investment aligns with amendments to the investor rights agreement between Agnico Eagle and Cartier, which now permits Agnico Eagle to nominate one to three individuals to Cartier’s board of directors, depending on ownership thresholds and board size. It also provides Agnico Eagle with demand registration and piggy-back registration rights for the potential sale of common shares.
Agnico Eagle’s investment is stated to be for investment purposes, with the company open to adjusting its holdings in Cartier based on market conditions and other factors. This move may lead to acquiring additional common shares, warrants, or other securities, or disposing of some or all of the securities it currently owns.
The company, founded in 1957, is recognized for its sustainability practices and has maintained dividend payments for 33 consecutive years, currently offering a 1.52% yield. With a GREAT financial health score from InvestingPro and strong cash flows that sufficiently cover interest payments, this additional investment in Cartier Resources Inc. is part of Agnico Eagle’s broader strategy in the mining industry. Based on InvestingPro’s Fair Value analysis, the stock appears to be fairly valued at current levels.Investors seeking deeper insights can access 10 additional ProTips and comprehensive financial analysis through the Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.
In other recent news, Agnico Eagle Mines Limited has completed the acquisition of all outstanding common shares of O3 Mining Inc., making it a fully-owned subsidiary. This strategic move follows a board-supported takeover bid, with O3 Mining shareholders receiving $1.67 in cash per common share. Additionally, Agnico Eagle has announced plans to expand its stake in Collective Mining Ltd. through a non-brokered private placement. This transaction involves acquiring 4,741,984 common shares of Collective at C$11.00 each, totaling C$52,161,824, and exercising warrants to purchase an additional 2,250,000 common shares. As a result, Agnico Eagle’s ownership in Collective will increase to approximately 14.99% of the issued and outstanding common shares on a non-diluted basis. This investment aligns with Agnico Eagle’s strategy of acquiring strategic positions in high-potential geological projects. The company has consistently provided shareholder value, including annual cash dividends since 1983. These developments highlight Agnico Eagle’s ongoing efforts to strengthen its portfolio and enhance its position in the mining industry.
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