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Agnico Eagle Increases Investment in Maple Through Private Placement

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Key Takeaways

  • Agnico Eagle raised its Maple investment via a $351,971 non-brokered private placement.
  • The deal lifts its holding to 8,054,045 shares and 586,619 warrants, equal to 16.32% on a diluted basis.
  • An investor rights deal gives Agnico Eagle financing and board nomination rights tied to ownership levels.

Agnico Eagle Mines Limited (AEM - Free Report) has announced an increase in its investment in Maple Gold Mines Ltd. through a non-brokered private placement at a price of $0.60 per unit, for a total consideration of $351,971.40. The unit represented a combination of one common share of Maple and one common share purchase warrant of Maple.

Previously, Agnico Eagle held 7,467,426 common shares, representing approximately 16.32% of Maple’s issued and outstanding common shares on a non-diluted basis.

Now Agnico Eagle owns 8,054,045 common shares and 586,619 warrants, roughly 15.38% of the issued and outstanding common shares on a non-diluted basis, and 16.32% on a partially diluted basis, assuming exercise of the warrants and after giving effect to other securities issued concurrently by Maple with the private placement. Each of the warrants entitles Agnico Eagle to acquire one common share at a price of C$0.85 for a period of 36 months from the date of issue.

AEM and Maple are party to an investor rights agreement dated Oct. 13, 2020. Under this agreement, Agnico Eagle is entitled to certain rights provided a few ownership thresholds are upheld, including participation in equity financings to maintain its pro rata ownership in Maple or acquire up to a 19.90% interest in Maple, as well as the right to nominate one or two persons to Maple’s board, depending on the size of the board of directors of Maple.

This acquisition aligns with Agnico Eagle’s strategy of establishing strategic positions in prospective opportunities with strong geological potential. The company may increase or decrease its ownership in Maple over time, depending on market conditions and strategic priorities.

AEM stock has surged 96% over the past year compared with the industry’s 74.5% growth.

Zacks Investment Research
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AEM’s Zacks Rank & Other Key Picks

AEM currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the Basic Materials space are The Mosaic Company (MOS - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) . While MOS sports a Zacks Rank #1 at present, CRS and ASM carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. Its shares have gained 36.7% in the past year.

The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $9.51 per share, indicating a 27.14% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.38%. CRS’ shares have surged 77.8% in the past year.

The Zacks Consensus Estimate for ASM’s current-year earnings is pegged at 11 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 141.67%. ASM shares have jumped 292.3% in the past year.

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