Agnico Eagle acquires 15% Stake in ONGold Resources Following Asset Sale

Agnico Eagle Mines Limited has announced the acquisition of 8,700,000 common shares of ONGold Resources Ltd., marking a significant new partnership between the two companies. This transaction results in Agnico Eagle owning approximately 15.0% of ONGold’s issued and outstanding shares on a non-diluted basis.
The acquisition stems from an asset purchase agreement signed on November 25, 2024, between Yamana Gold Ontario Inc., a wholly-owned subsidiary of Agnico Eagle, and ONGold’s subsidiary, 10215825 Manitoba Ltd. The transaction, completed on December 20, 2024, involved ONGold acquiring assets from Yamana in exchange for issuing 8,700,000 shares to Agnico Eagle.
Investor Rights Agreement
Alongside the transaction, Agnico Eagle and ONGold entered into an investor rights agreement granting Agnico Eagle several rights tied to its ownership stake:
• The right to participate in future equity financings and top-up its holdings to maintain or expand its ownership interest to 19.99%.
• The right to nominate one director to ONGold’s board, increasing to two nominations should ONGold expand its board to eight or more members.
Agnico Eagle stated it has no current plans to exercise its board nomination rights.
Strategic Alignment
Agnico Eagle acquired the shares as part of the broader asset sale agreement. Moving forward, the company may adjust its stake in ONGold by acquiring additional shares or disposing of its holdings as market conditions and strategic priorities evolve.
About Agnico Eagle Mines Limited
Agnico Eagle is a Canadian-based senior gold mining company and the world’s third-largest gold producer. The company operates mines in Canada, Australia, Finland, and Mexico and manages a robust pipeline of exploration and development projects, including those in the United States. Founded in 1957, Agnico Eagle has delivered consistent value to shareholders, maintaining a strong track record of environmental, social, and governance leadership. The company has declared a cash dividend annually since 1983.
This acquisition underscores Agnico Eagle’s commitment to fostering collaborative partnerships and enhancing its strategic portfolio within the mining industry.
Tags: Northern Ontario / Deals & Financial / Gold / All Articles