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TORONTO - Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM), currently valued at $52.03 billion and trading near its 52-week high of $104.45, has announced its decision to increase its investment in Collective Mining Ltd. through a non-brokered private placement. According to InvestingPro data, the company has demonstrated remarkable performance with an 88.89% return over the past year. The transaction will involve Agnico Eagle acquiring 4,741,984 common shares of Collective at a price of C$11.00 each, totaling C$52,161,824. Additionally, Agnico Eagle plans to exercise warrants to purchase an extra 2,250,000 common shares at C$5.01 per share, amounting to C$11,272,500 in aggregate consideration.
This strategic move will occur on or around March 20, 2025, subject to customary closing conditions, and will enhance Agnico Eagle’s ownership in Collective to approximately 14.99% of the issued and outstanding common shares on a non-diluted basis. Prior to this investment, Agnico Eagle held 5,726,235 common shares and 2,250,000 warrants of Collective. With a strong financial health score rated as "GREAT" by InvestingPro, the company operates with moderate debt levels and maintains robust cash flows.
Agnico Eagle’s investment aligns with its strategy of acquiring strategic positions in high-potential geological projects. The investment in the Colombia-based early-stage gold exploration project led by a seasoned team allows Agnico Eagle to further assess the project’s geological potential and the mining jurisdiction.
The companies’ relationship began with an initial investment by Agnico Eagle on February 24, 2024, which included an investor rights agreement. This agreement granted Agnico Eagle certain rights contingent on maintaining ownership thresholds. These rights include participating in equity financings and maintaining or increasing its pro rata ownership. With the closing of the Private Placement, the agreement will be amended to reflect the new ownership interest ceiling of 14.99% on a partially-diluted basis.
Agnico Eagle has stated that the acquisition of common shares is for investment purposes and may, depending on market conditions and other factors, consider additional acquisitions or disposals of Collective securities.
The information provided is based on a press release statement by Agnico Eagle Mines Limited. The company, a senior gold mining entity and the third largest gold producer globally, has a history of consistent value creation for shareholders and has declared a cash dividend annually since 1983, maintaining payments for 33 consecutive years. InvestingPro analysis reveals 12 additional key insights about Agnico Eagle’s performance and prospects, available through their comprehensive Pro Research Report, which transforms complex Wall Street data into actionable intelligence for smarter investing decisions.
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