Agnico Eagle Mines (TSX: AEM) has agreed to buy 8.7 million common shares of Cadillac Mines Corporation (TSX: CADY) at C$6.90 each in a private placement worth C$60.0 million that will push its stake in the soon to be public explorer past the 11% mark.
The senior producer already held 22,821,028 shares, or roughly 9.70% of Cadillac on a non-diluted basis. Once the placement closes, expected on or about August 5, it will own 31,517,028 shares, or about 11.09% after accounting for Cadillac’s initial public offering.
The subscription is conditional on that IPO closing, and it is separate from the offering itself.
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Agnico’s position dates back to a 2023 subscription agreement that granted it the right to participate in equity financings to maintain its proportionate ownership. The company has framed the latest purchase as part of a broader strategy of taking strategic stakes in ground with high geological potential. On closing, it will sign a 180-day lock-up in favour of the underwriters.
Cadillac’s IPO, priced this week, was upsized to roughly $385 million from an initial $363 million on the back of excess demand. The structure covers 47,075,000 common shares at $6.90 and 6,303,000 special flow-through shares at $9.52.
Only part of that money reaches the company. The treasury portion, consisting of 18.8 million common and flow through shares, delivers $190.0 million to Cadillac, while a secondary offering of 28.2 million shares by existing holders sends $194.8 million to those selling shareholders. An over-allotment option covering an additional 8.0 million shares would be filled entirely from secondary sales.
The company, formerly Gold Candle, is anchored by the Kerr-Addison Project, built around a past producing gold mine that closed in 1996.
Shares are expected to begin trading on the Toronto Stock Exchange under the symbol CADY today.
