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Agnico Eagle to invest C$57.2M in Radisson to revive O’Brien mine
Agnico will buy 53.4 million units at $1.07 each, a deal that would take a 10.5% stake on a non-diluted basis and up to 14.9% if warrants are exercised.
Agnico Eagle Mines is investing C$57.2 million, or about $41.4 million, in Radisson Mining Resources to help restart work at the O’Brien historical mine in Quebec’s Abitibi region, according to Mining.com.
The Canadian gold producer will purchase 53.4 million units, made up of one Radisson share plus half of a purchase warrant, at $1.07 per unit, a 6% premium to Radisson’s Friday closing price. The investment is expected to give Agnico a 10.5% stake on a non-diluted basis and up to 14.9% on a partially diluted basis if the warrants are exercised.
Radisson said the funding will support an advanced underground exploration program, including the first modern underground access at O’Brien, along with an access ramp, underground workings, surface infrastructure, and water management facilities. Engineering and permitting will begin immediately, while Radisson continues its fully funded 140,000-metre surface drilling campaign.
The companies also outlined governance and deal terms, including Agnico board representation and participation rights in future financings, along with restrictions on certain property transactions, royalties, streams, and secured financings through the end of 2028. Radisson is planning O’Brien as an 11-year underground mine with an estimated C$175 million initial capital cost and toll milling at nearby Doyon, based on a July 2025 preliminary economic assessment that used a $3,300 per ounce gold price.
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