Agnico-Eagle investing $11.7 million in Rupert Resources
Agnico-Eagle Mines Ltd. [AEM-TSX, AEM-NYSE] has acquired 2.6 million common shares of Rupert Resources Ltd. [RUP-TSXV] in a non-brokered private placement at a price of $4.50 per common share for a total consideration of $11.7 million. Agnico was participating in a previously announced placement that raised $28.4 million from the issuance of 6.32 million common shares.
Concurrent with the closing of the private placement, Agnico-Eagle exercised its right under an investor rights agreement dated February 11, 2020, between Agnico and Rupert to designate a nominee, Carol Plummer, to be appointed, or nominated for election to the Rupert board of directors. Rupert has advised Agnico-Eagle that it will nominate Plummer for election at Rupert’s upcoming annual general meeting and will include the required information in its poxy circular.
Rupert’s Finland properties are adjacent to the Kittila gold mining operations of Agnico-Eagle, which previously held a significant stake in the junior.
Plummer is an executive vice-president, sustainability, people and culture, at Agnico-Eagle and possesses extensive experience in project evaluation, mine building and operations, particularly in Finland, where she was previously the general manager of Agnico’s Kittila mine. Agnico-Eagle believes that Plummer’s expertise will be a valuable asset to the Rupert board as Rupert advances the Ikkari project and continues exploring the full potential of the property.
Rupert shares advanced on the news, rising 2.5% or 11 cents to $4.45. The shares trade in a 52-week range of $5.08 and $3.28.
Prior to the private placement, Agnico-Eagle owned 30.1 million common shares, representing approximately 13.3% of the issued and outstanding shares of Rupert on a non-diluted basis. Upon closing of the private placement, Agnico will hold 32.8 million shares, or 14% of the shares outstanding on a non-diluted basis.
Agnico-Eagle is a Canadian gold mining company and ranks as the third largest gold producer in the world, producing precious metals from operations in Canada, Australia, Finland and Mexico.
Rupert was in the news recently when it announced details of a $45 million bought deal equity financing and concurrent private placement. The company said net proceeds of the offering and private placement will be used for continuing exploration expenditures, technical and environmental studies on the company’s properties in Finland.
Rupert recently announced the results of a pre-feasibility study (PFS) for its 100%-owned Ikkari project.
Highlights of the PFS include a probable mineral reserve of 52 million tonnes at 2.1 g/t or 3.5 million ounces. The company said that represents a 85% mineral resource to mineral reserve conversion.
The PFS envisages a 20-year life of mine, consisting of an open pit operation for the first 10 years with average annual production of 227,000 ounces annually, transitioning to an underground operation in years 10 to 20.
Ikkari is part of the Rupert Lapland Project, which also includes the Pahtavaara gold mine, mill, and exploration permits, plus concessions, which are located in the Central Lapland Greenstone Belt