Agnico-Eagle Mines Ltd. has purchased a $50-million stake in Gold Eagle Mines Ltd. through a private placement. Based in Toronto, Agnico-Eagle will now hold a 7.2 per cent interest in Gold Eagle Mines. This transaction saw Agnico purchasing 5.5 million units of Gold Eagle at $9.05 per share. each share is comprised of one common share and one half of a share purchase warrant, each of which entitles it to purchase one share of Gold Eagle at $10.15 for 36 months.
Gold Eagle owns the Bruce Channel gold discovery in the Red Lake Trend of northwest Ontario.
"Our investment in Gold Eagle is a strong indication of the quality and potential of the high-grade Bruce Channel discovery," Agnico-Eagle CEO Sean Boyd said in a statement.
"Agnico-Eagle has recently accumulated a property position in the Red Lake area and this investment increases our exposure to this world class gold camp and is consistent with our strategy of investing in promising gold development opportunities."
Shares in Agnico-Eagle were up $4.66, nearly seven per cent, at $71.40 in midday trading at the Toronto Stock Exchange. Gold Eagle stock jumped 16 per cent to $9.15.
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