Agnico Eagle Mines subsidiary Avenir Minerals has invested approximately C$1 million in Canada Nickel Company through the mining developer’s non-brokered private placement.
Avenir acquired 666,667 Canada Nickel units at C$1.50 each for total consideration of C$1,000,000.50.
Each unit consists of one Canada Nickel common share and one-half of a warrant. Each full warrant can be exercised for one common share at C$2.25 during a 36-month period following the financing’s closing.
Following the private placement and concurrent issuances by Canada Nickel, Avenir owns or controls 22,467,926 common shares and 8,293,962 warrants.
That position represents approximately 8.68% of Canada Nickel’s outstanding shares on a non-diluted basis and approximately 11.52% on a partially diluted basis assuming exercise of the warrants controlled by Avenir.
The investment builds on a relationship established in 2023.
Agnico Eagle and Canada Nickel entered into an investor rights agreement on December 29, 2023.
Subject to maintaining specified ownership thresholds, that agreement gives Agnico Eagle participation rights in certain equity offerings and the ability to top up its holdings after dilutive issuances to maintain or acquire up to the greater of its then-current ownership position and 15.6% on a partially diluted basis.
The agreement also provides Agnico Eagle with the right to nominate a director under specified circumstances, although the company said it currently has no intention of exercising that right.
Avenir described the position as part of its strategy of investing in prospective opportunities with high geological potential.
The companies may increase or reduce their Canada Nickel holdings in the future depending on market conditions, strategic priorities and other considerations.
Agnico Eagle is Canada’s largest mining company and the world’s second-largest gold producer, with operations across Canada, Australia, Finland and Mexico.
