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Agnico to fund Alaska gold and copper projects via $32M Vizsla deal
Agnico will own 19.9% of Vizsla at closing and 22% after Nov. 18 approval, while exploration spending and development risk largely shift to the junior partner.
Vizsla Copper agreed to acquire Agnico Eagle Mines’ Delta and Helm Bay projects in Alaska in a C$32 million, or about US$23.3 million, share-based transaction that values the shares at $32 million. The deal makes Vizsla Copper, traded on the TSX Venture Exchange and OTC, the senior gold miner’s largest shareholder, adding a polymetallic sulphide deposit near Tok and a separate gold project near Ketchikan.
Under the structure, Agnico will hold 19.9% of Vizsla at closing, rising to 22% after disinterested shareholders approve the creation of Agnico as a new control person, with that vote scheduled for Nov. 18. Mining.com reports the arrangement is designed to keep Agnico tied to the projects through its Vizsla stake, warrants, royalties, and potential milestone payments.
The purchase includes Delta, roughly 60 km southwest of Tok and about 700 km northwest of Juneau, and Helm Bay, about 35 km north of Ketchikan. Delta is described as having a 2006 historical inferred estimate of 15.4 million tonnes grading 0.6% copper, 1.6% lead, 3.8% zinc, 62 grams silver per tonne, and 1.7 grams gold, while verification, confirmation drilling, and updated geological modelling may be needed before Vizsla can publish an updated estimate.
Agnico’s contribution is largely exposure to the projects while shifting most exploration spending and development risk to Vizsla, which will not pay cash for the assets but will issue shares that dilute existing investors. Vizsla Copper shares were $1.57 in Toronto by Wednesday morning, unchanged on the day, and down 16% over the past year, according to Mining.com.
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