Agnico-Eagle acquires 9.96% stake in junior Sulliden Gold
TORONTO (miningweekly.com) – Canada’s Agnico-Eagle Mines has acquired a 9.96% interest in project developer Sulliden Gold.
The $24-million private-placement transaction that closed on Friday, saw Agnico-Eagle acquiring 26.96-million Sulliden share units, at a price of 89c apiece.
Each unit was made up of one common share and 0.7 of a common share purchase warrant, for a strike price of $1.31, exercisable until April 12, 2015.
Sulliden on Friday said it expected to raise an additional $24.73-million, should all warrants be exercised.
The deal also gave Agnico-Eagle the right to participate in future equity offerings by Sulliden in order to maintain its pro rata investment for a period of two years.
Agnico-Eagle in a statement said it was acquiring the units for investment purposes.
Sulliden is currently focused on the exploration and development of its fully owned gold and silver Shahuindo project, located in a prolific gold-producing district in northern Peru.
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