Agnico Eagle invests $57 million in Radisson Mining Resources

Agnico Eagle Mines Ltd. has recently agreed to invest $57 million in Radisson Mining Resources Inc. The investment will be made in two parts - an annual payment of $205 plus GST for the first year, with the rate increasing to $233 plus GST for subsequent years. This investment is subject to renewal every 52 weeks.

Radisson Mining Resources Inc. owns the O’Brien gold project located in Quebec’s Abitibi region. As part of the agreement, Agnico Eagle will acquire 53,420,000 units from Radisson. Each unit comprises one Radisson share and half of a share purchase warrant, which can be exercised within 60 months following the closing date of the private placement.

Upon completion of the investment, Agnico Eagle will hold a 10.45 percent stake in Radisson on a non-diluted basis and 14.90 percent on a partially diluted basis, assuming the exercise of its warrants. Each whole warrant entitles the holder to buy one Radisson share for $1.39, providing an opportunity for Agnico Eagle to potentially increase its stake in the company.