Sulliden Gold (TSX: T.SUE, Stock Forum) Tuesday said Agnico-Eagle Mines (TSX: T.AEM, Stock Forum) has agreed to make a strategic investment of $24 million into Sulliden through a non-brokered private placement of units at a price of 89 cents per unit, this according to a company news release.
As a result of the transaction, Agnico-Eagle will own 9.96% of Sulliden's issued and outstanding shares on a non-diluted basis.
"Our investment highlights the quality and potential of Sulliden's Shahuindo Project. We also view this as an opportunity to gain exposure to another jurisdiction with a well-established mining culture. We look forward to participating in the advancement of Shahuindo towards production," said Agnico-Eagle President and CEO Sean Boyd.
Sulliden is advancing its Shahuindo gold/silver project in northern Peru, which is expected to produce approximately 90,000 gold equivalent ounces annually at average cash operating costs of $552 per ounce.