Agnico (AEM) Exercises Participation Rights in Collective Mining Offering

Agnico Eagle Mines Limited (NYSE:AEM) is one of the top stocks to buy as gold rallies. On October 6, Collective Mining – a Canadian mineral exploration company – launched a C$125 million ($89.63 million) public offering of common shares. The offering was structured as a “bought deal” and was led by BMO Capital Markets and Scotiabank. Agnico Eagle, which has contractual participation rights in Collective Mining’s equity financings, intends to subscribe for 789,473 Common Shares at an issue price of C$19.00 ($13.62) per share.

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If the underwriters’ overallotment option is not exercised, the completion of this transaction will result in Agnico Eagle’s holding of Collective Mining’s issued and outstanding common shares reaching 14.64%. Agnico Eagle will acquire the shares through a non-brokered private placement that is expected to close concurrently with the public offering. Both the public offering and the private placement are subject to regulatory approvals from the Toronto Stock Exchange and the NYSE American.

Agnico Eagle initially invested in Collective Mining in February 2024. As a result, it received specific rights to participate in subsequent equity financings and maintain its pro rata ownership level. On closing, the rights agreement with Agnico Eagle will be amended to increase their participation ceiling from 9.99% to 14.99%. This matches the new ownership level.

Agnico Eagle Mines Limited (NYSE:AEM) explores, develops, and produces gold and other precious metals from operations in Canada, Australia, Finland, and Mexico. It owns and operates assets including Detour Lake, Canadian Malartic, Fosterville, LaRonde, and Meadowbank. Its main offerings are gold production and reserves.

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Disclosure: None. This article is originally published at Insider Monkey.