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Agnico Eagle Acquires 26M Osisko Metals Shares, Boosts Stake

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Key Takeaways

  • Agnico Eagle agreed to buy 26M Osisko Metals shares at C$0.48 in a non-brokered placement.
  • AEM's holdings rise to 67.21M shares, equal to 9.85% non-diluted and 12.49% partially diluted ownership.
  • AEM gains investor rights, including future financing participation and conditional board nomination.

Agnico Eagle Mines Limited (AEM - Free Report) has announced that it further strengthened its strategic equity interest in Osisko Metals Incorporated by acquiring 26 million common shares through a non-brokered private placement at C$0.48 per share, representing a total investment of C$12.48 million. 

The transaction aligns with Agnico Eagle’s disciplined capital allocation framework, under which it selectively invests in businesses with strong geological potential to complement its internally generated growth pipeline. The company’s ownership stake in Osisko Metals increases, highlighting AEM’s continued support for Osisko’s development plans and its exposure to potential long-term value creation as it advances its assets. 

Before the transaction, Agnico Eagle owned 41.21 million common shares and 20.61 million warrants of Osisko Metals. Following the closing, its holdings increased to 67.21 million common shares, while the warrant position remained unchanged. This translates into an ownership interest of approximately 9.85% on a non-diluted basis and about 12.49% on a partially diluted basis, reflecting Agnico Eagle’s strengthened strategic stake and continued commitment to Osisko Metals’ long-term growth potential. 

Concurrently with the private placement, Agnico Eagle and Osisko Metals have an investor rights agreement that provides Agnico Eagle with certain participation rights in future equity financings and conditional rights to nominate directors. 

Agnico Eagle may acquire additional common shares or other securities of Osisko or dispose of some or all of the Osisko shares or other securities, depending on market conditions, strategic priorities and other factors. 

Shares of AEM have gained 35.8% in the past six months compared with the industry’s 58.3% rise. 

Zacks Investment ResearchImage Source: Zacks Investment Research

AEM’s Zacks Rank & Other Key Picks

AEM flaunts a Zacks Rank #1 (Strong Buy) at present. 

Some other top-ranked stocks in the Basic Materials space are AngloGold Ashanti Plc. (AU - Free Report) , Royal Gold, Inc. (RGLD - Free Report) and Centerra Gold, Inc. (CGAU - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here

The Zacks Consensus Estimate for AU’s current-year earnings is pegged at $5.51 per share, indicating a 149.32% year-over-year increase. Shares of AU have surged 74.6% over the past six months. 

The Zacks Consensus Estimate for RGLD’s current fiscal-year earnings stands at $7.97 per share, reflecting a 52% year-over-year increase. Its earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed once, with the average earnings surprise of 4%. 

The Zacks Consensus Estimate for CGAU’s current fiscal-year earnings is pegged at 97 cents per share, indicating a 37% year-over-year increase. Its earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed once, with the average earnings surprise of 22%. 


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