Agnico-Eagle unveils $60 million investment in Cadillac Mines

Agnico-Eagle Mines Ltd. [AEM-TSX, AEM-NYSE] said Friday it has entered into a subscription agreement with Cadillac Mines Corp. [TSX-CADY], a company that is in the process of completing an upsized $385 million IPO.

Cadillac Mines is a Canadian mineral exploration and development company with a focus on advancing a portfolio of gold and critical mineral projects along the prolific Cadillac-Larder Break in Ontario and Quebec. The portfolio includes the Kerr-Addison Project, the Galloway Project and the Geminid nickel sulphide project.

Agnico said it has agreed to acquire 8.7 million common shares of Cadillac at a price of $6.90 per share for a total consideration of $60 million. The private placement is subject to certain closing conditions, including the closing of Cadillac’s initial public offering. The private placement is expected to close on August 5, 2026.

On Friday, Cadillac announced the pricing of its initial public offering of 47.07 million common shares priced at $6.90 per share, and 6.30 million special flow-through shares priced at $9.52 per flow-through share. Total gross proceeds of the IPO are pegged at $385 million.

The company said it has filed and obtained receipt for a final base PREP prospectus from the securities regulatory authorities in each of the province and territories of Canada. The offering was upsized from an initial size of approximately $363 million set out in the final prospectus as a result of excess demand.

The Kerr-Addison project is Cadillac’s flagship asset, located in McGarry Two., Ontario. It hosts an indicated resource of 3.4 million ounces of gold, plus a further 2.2 million ounces in the inferred category.

Prior to entering into the subscription agreement, Agnico-Eagle owned 22.8 million Cadillac common shares representing approximately 9.70% of the issued and outstanding shares on a non-diluted basis. Upon closing, Agnico is expected to own 31.5 million common representing approximately 11.09% of the issued and outstanding shares on a non-diluted basis after giving effect to the IPO.

Agnico is acquiring the shares as part of its strategy of acquiring strategic positions in prospective opportunities with high geological potential.

Under the agreement, Agnico is entitled to certain rights, including the right to participate in equity financings in order to maintain its pro rata ownership interest in Cadillac at the time of any such financing.

Upon closing of the IPO, Agnico will enter into a lock up agreement in favour of the underwriters of the IPO. Under the agreement, Agnico will agree that it will not, directly or indirectly, without the prior written consent of the underwriters offer, sell pledge or otherwise dispose of any common shares or any securities convertible into common shares, or make any short sale. Agnico-Eagle is Canada’s largest mining company and the world’s third largest gold producer.