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Be the first with the news that moves the market- Agnico Eagle Mines Limited (AEM) is investing over C$13 million in junior mining company Rupert Resources Ltd (RUP)
- Both companies have exploration and mining assets in Finland and Canada.
- Agnico Eagle will purchase 15,391,605 units (comprising of a common share a 75 per cent of a warrant) at 85 cents a unit
- This makes Agnico Eagle a 9.9 per cent stake holder in Rupert Resources
- Agnico Eagle will be now be able to participate in equity financing as well as nominate a board member, if the Agnico eagle wishes to do so
- Rupert Resources Ltd (RUP) was up by 14.1 per cent, with shares currently trading at C$0.89
- Agnico Eagles Mines Ltd. (AEM) was up 0.2 percent, with shares currently trading at C$78.99
Agnico Eagle Mines Limited (AEM) is investing in Rupert Resources Ltd (RUP), a junior mining and exploration company.
Agnico Eagle’s investment takes the form of a non-brokered private placement. The company will purchase 15,391,605 units (comprising of a common share a 75 per cent of a warrant) at 85 cents a unit for a total value just over C$13 million.
After this transaction closes on the 12th of February, Agnico Eagle will own around 9.9 per cent of the un-diluted issued and outstanding shares.
This will make Agnico Eagle a significant investor in the smaller company and will be able to participate in equity financing, nominate a director to the board if so desired.
James Withall, CEO of Rupert commented, “The new investment is expected to fund Rupert’s exploration campaign for at least 12 months and may lead to synergies in the event Rupert’s projects progress to the development stage.”
Agnico Eagle is a large company, with a market cap of over C$14 billion. The company currently has operating mines in Finland, Canada and Mexico.
Both companies saw their share price increase today.
Rupert Resources Ltd (RUP) was up by 14.1 per cent, with shares currently trading at C$0.89 .
Agnico Eagles Mines Ltd. (AEM) was up 0.2 percent, with shares currently trading at C$78.99.
