Friday, 27th June 2008 (498 views)

Agnico-Eagle Mines has announced it will invest $50 million in Gold Eagle Mines.

The company will buy 5.5 million units shares in the company at $9.05 each. Each unit accounts for one common share and one half of a share purchase warrant.

One share purchase warrant will entitle Agnico-Eagle to buy one share of Gold Eagle at $10.15 for three years.

In total Agnico-Eagle now owns a 7.2 per cent interest in Gold Eagle.

The chief executive officer of Agnico-Eagle, Sean Boyd, said: "Our investment in Gold Eagle is a strong indication of the quality and potential of the high-grade Bruce Channel discovery."

The Bruce Channel is in the Red Lake Trend in Ontario. It is owned by Gold Eagle.

Agnico-Eagle has gold operations in Finland, Mexico, Canada and the US. The LaRonde min in Quebec is Canada's largest gold deposit and is owned the company.

LaRonde has 19.9 million tones of probable deserve with a grading of six g/t of gold.

 

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