https://www.zacks.com/stock/news/2204571/agnico-eagle-mines-aem-expands-with-canada-nickel-investment?cid=CS-ZC-FT-analyst_blog%7Ccompany_news_-_corporate_actions-2204571&miRedirects=1 Agnico Eagle Mines Limited (AEM - Free Report) disclosed its acquisition of 19.6 million units of Canada Nickel Company Inc. at $1.18 per Unit, totaling approximately $23.13 million. The units were purchased from multiple sellers involved in an offering of flow-through Units by Canada Nickel. Each Unit comprises one common share of Canada Nickel and 0.35 of one common share purchase warrant, allowing the holder to acquire one common share at $1.77 until Dec 29, 2026, with potential acceleration based on certain events.
Having extensively assessed the critical minerals sector over two years, particularly in Canada, Agnico Eagle strategically invested in Canada Nickel, considering its advantageous position in regions where Agnico Eagle operates. The investment aligns with Agnico Eagle's strategy of early-stage project investments, providing a foothold in the emerging nickel belt. Canada Nickel's Crawford Nickel-Cobalt Sulphide Project, situated in northern Ontario near Agnico Eagle's Abitibi region operations, boasts a sizable nickel resource with an anticipated low carbon footprint.
Before the Share Purchases, Agnico Eagle held no common shares. Post-acquisition, Agnico Eagle possesses 19.6 million common shares and 6.86 million warrants, constituting about 12% of the issued and outstanding common shares on a non-diluted basis and 15.6% on a partially-diluted basis (factoring in the exercise of Warrants