Agnico Eagle invests $57-million in Radisson Mining Resources

Agnico Eagle Mines Ltd. AEM-T has signed a deal to invest $57-million in Radisson Mining Resources Inc RDS-X.

Radisson owns the O’Brien gold project in Quebec’s Abitibi region.

Under the agreement, Agnico is acquiring 53,420,000 units at a price of $1.07 per unit.

Each unit includes one Radisson share and half of a share purchase warrant.

Each whole warrant entitles the holder to buy one Radisson share for $1.39 for a period of 60 months following the closing date of the private placement, subject to acceleration in certain circumstances.

On closing of the private placement, Agnico Eagle will hold a 10.45 per cent stake in Radisson on a non-diluted basis and 14.90 per cent on a partially diluted basis, assuming the exercise of its warrants.