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TORONTO — Gold miner Agnico Eagle Mines Ltd. has acquired a minority stake in sa¹ú¼Ê´«Ã½ Nickel Co. Ltd. in what it says is an early stage investment in the growing critical minerals sector.

Under the deal, Agnico Eagle says it has bought 19.6 million units of sa¹ú¼Ê´«Ã½ Nickel in a flow-through offering at a price of $1.18 per unit for a total of $23.1 million.

Each unit includes one share of sa¹ú¼Ê´«Ã½ Nickel and 0.35 of a share purchase warrant, which entitles the holder to acquire a share at a set price of $1.77 at any time before Dec. 29, 2026, subject to conditions.

The investment gives Agnico Eagle a 12 per cent stake in sa¹ú¼Ê´«Ã½ Nickel on a non-diluted basis and also gives it a right to maintain its stake in sa¹ú¼Ê´«Ã½ Nickel in future financings and to nominate one person to the company's board of directors.

sa¹ú¼Ê´«Ã½'s mining industry has been increasing its focus on critical minerals like copper, nickel and cobalt needed as part of the transition away from fossil fuels.

sa¹ú¼Ê´«Ã½ Nickel, which owns the Crawford nickel-cobalt sulphide project north of Timmins, Ont., raised a total of nearly $34.7 million in its offering.

This report by The Canadian Press was first published Jan. 2, 2024.

Companies in this story: (TSX:AEM, TSXV:CNC)

The Canadian Press