Agnico Eagle Invests in ATEX Resources, Bolstering Copper Exploration in Chile
Agnico Eagle Invests in ATEX Resources, Bolstering Copper Exploration in Chile

Agnico Eagle Invests in ATEX Resources, Bolstering Copper Exploration in Chile

  • 28-Oct-2024 1:40 PM
  • Journalist: Patricia Jose Perez

Agnico Eagle Mines Limited, a global leader in gold and copper mining, has announced a strategic investment in ATEX Resources Inc. This move underscores Agnico Eagle's commitment to explore high-potential projects and expand its geographic footprint. The announcement was made on October 25, 2024 via a presser released on Agnico Eagle’s website.

Agnico Eagle will invest in ATEX Resources by purchasing 33,869,939 common shares and 16,934,969 warrants. This investment will give Agnico Eagle a significant stake in ATEX as it will represent approximately 13.21% of the company on a non-diluted basis and potentially 18.59% on a partially diluted basis, considering the exercise of warrants.

This investment will total approximately US $40 million.

To protect its investment, Agnico Eagle will enter into an investor rights agreement with ATEX. This agreement grants Agnico Eagle the right to maintain its pro-rata ownership in ATEX by participating in future equity financings and potentially increasing its stake to a maximum of 19.99%. Additionally, Agnico Eagle will have the option to nominate a board member to ATEX's board.

Agnico Eagle's investment in ATEX is driven by the company's belief in ATEX's potential and its strategic fit within Agnico Eagle's portfolio. Agnico Eagle may further increase its stake in ATEX or reduce its holdings based on market conditions and other factors.

Agnico Eagle's strategic investment in ATEX Resources aligns with its historical approach of backing projects with substantial geological promise. By acquiring a stake in ATEX, Agnico Eagle gains exposure to a promising early-stage copper-gold exploration project in Chile. This investment not only diversifies Agnico Eagle's portfolio but also provides it with the opportunity to participate in the project's future growth. Furthermore, the investor rights agreement ensures that Agnico Eagle can maintain its pro-rata ownership in ATEX. It also enables them to participate in future equity financings, solidifying its strategic position within the company.

This investment strengthens Agnico Eagle's portfolio by adding exposure to a promising copper-gold project in Chile. It also reinforces the company's position as a diversified mining company with a focus on growth and value creation.

Agnico Eagle is a leading global gold mining company with operations in Canada, Australia, Finland, and Mexico. The company is renowned for its commitment to sustainable mining practices and its strong track record of delivering value to shareholders.

ATEX Resources is a Canadian exploration company focused on advancing its high-potential copper-gold project in Chile. The company's experienced team is dedicated to unlocking the value of its assets and delivering long-term shareholder value.

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