Agnico Eagle expands stake in First Nordic to 13%

Agnico Eagle Mines (TSX: AEM; NYSE: AEM) is investing C$8.2 million in First Nordic Metals (TSXV: FNM), acquiring approximately 28 million common shares at C$0.2925 per share. The transaction will raise Agnico’s ownership in First Nordic to approximately 13.25% from its current 0.75%.

The investment marks a strategic move by Agnico Eagle to satisfy outstanding payments owed by FNM’s subsidiary, Gold Line Resources, under a purchase agreement.

Following the transaction’s closure, the companies will establish an investor rights agreement granting Agnico the option to participate in future equity financings and potentially nominate board members.

First Nordic is finalizing its acquisition of the Oijärvi gold project in Finland. This acquisition includes the Kylmäkangas gold deposit, characterized by high-grade resources and potential for expansion, the company said.

“Oijärvi has all the key attributes FNM looks for in a high-quality project – high grades, significant growth potential and a great location. We are thrilled to welcome Agnico Eagle and look forward to having them as a significant shareholder,” First Nordic CEO Taj Singh said in a news release.

The Kylmäkangas project boasts an indicated mineral resource of 159,000 oz. of gold equivalent and an inferred resource of 152,000 oz., with ongoing exploration indicating further expansion opportunities. Historical drilling has identified additional zones of mineralization.

In Sweden, First Nordic’s flagship asset, the Barsele gold project, is operating under a joint venture with Agnico. The partnership enhances First Nordic’s operational capabilities and underscores Agnico’s commitment to expanding its European portfolio, the company said.