TORONTO - Agnico Eagle Mines Limited (NYSE:AEM) (TSX:AEM), a senior gold mining company, has acquired a significant shareholding in Prism Resources Inc., reflecting an investment strategy aimed at expanding its interests in mining assets.
The transaction, which took place on Monday, saw Agnico Eagle purchase 5,750,000 common shares of Prism from Trevali Mining (OTC:TREVQ) Corporation, amounting to an 11.07% ownership on a non-diluted basis, for a total consideration of C$100,000.
Prism Resources holds a 7.5% Net Profit Interest royalty in the Aurora and Sunday Lake claims, which are part of the Detour Lake mine property owned by Agnico Eagle. This acquisition, therefore, consolidates Agnico Eagle's economic interest in these claims, which include the Zone 58N and other geologically prospective areas.
Agnico Eagle has stated that the purchase of these shares is purely for investment purposes, and future transactions may occur based on market conditions and other relevant factors. The company could potentially increase or decrease its stake in Prism Resources, depending on these circumstances.
Before this deal, Agnico Eagle did not possess any common shares of Prism. The acquisition marks a new investment in the company's portfolio and aligns with its strategy of investing in assets that could contribute to its mining operations.
An early warning report will be filed by Agnico Eagle, as required by applicable securities laws, detailing the transaction. Interested parties can obtain a copy of this report by contacting Agnico Eagle's Investor Relations.
This move by Agnico Eagle, a company recognized for its environmental, social, and governance practices, and a consistent dividend payer since 1983, underscores its commitment to strategic investments that bolster its position in the gold mining sector.
The information regarding this acquisition is based on a press release statement.
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