Agnico Eagle Mines has committed to an investment of C$5.02m ($3.6m) in Cascadia Minerals and is planning to purchase 19.31 million units at C$0.26 ($0.18) per unit through a non-brokered private placement.
Each unit consists of one common share and one-half of a common share purchase warrant, with each whole warrant allowing the acquisition of an additional common share at C$0.32 within two years.
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In a separate transaction, Agnico Eagle intends to buy 10 million units from several sellers participating in Cascadia’s flow-through unit offering. This acquisition is valued at C$2,600,000.
Both the private placement and the unit purchases require TSX Venture Exchange approval and are anticipated to close in April 2026.
Post-completion, Agnico Eagle will hold approximately 14.21% of Cascadia’s issued common shares on a non-diluted basis and roughly 19.90% on a partially diluted basis after exercising warrants.
Currently, Agnico Eagle does not own any shares or warrants in Cascadia.
An investor rights agreement will be established between Agnico Eagle and Cascadia upon the transactions’ closure.
This accord grants Agnico Eagle the right to participate in future equity financings to maintain its stake or increase its ownership up to 19.99%.
Additionally, while there is no immediate intention, Agnico Eagle retains the right to nominate individuals to Cascadia’s board.
Agnico Eagle’s acquisitions align with its strategy to invest in geological opportunities.
Market conditions could influence further acquisitions or disposals of Cascadia securities by Agnico Eagle.
Furthermore, an earn-in agreement was signed between the two companies, allowing Agnico Eagle to earn a 51% interest in Cascadia’s Catch property located in Yukon.
Following this, a joint venture agreement (JVA) will be formed where Cascadia will manage the project while Agnico Eagle can potentially acquire an additional 29% stake, subject to TSX Venture Exchange approval.
Simultaneously, Agnico Eagle and Cascadia entered into a strategic alliance agreement for exploring projects within the Stikine Terrane in Yukon.
Under this alliance, Agnico Eagle will fund exploration activities conducted by Cascadia over three years.
In October 2024, Agnico Eagle committed to a C$55m ($40m) investment in ATEX Resources, subscribing for 33.86 million units at C$1.63 each in a significant private placement in Canada.
