Agnico Eagle Mines (NYSE and TSX: AEM) has agreed to purchase Prism Resources Inc.'s right, title and interest in and to a 7.5% net profit interest royalty over certain properties in the Porcupine Mining District of Ontario owned by Agnico in exchange for $5 million in cash, the company said Thursday.
The transaction is subject to a number of customary closing conditions, including approval by Prism's shareholders and receipt of acceptance of the TSX Venture Exchange. Subject to satisfaction of the closing conditions, the transaction is expected to close in the third quarter of 2026, AEM added.
Agnico Eagle said it is not acquiring any common shares or other securities in the capital of Prism in connection with the transaction. Immediately before and after the execution and delivery of the Royalty Purchase Agreement, Agnico Eagle owned 5.75 million common shares, representing approximately 11.07% of the issued and outstanding common shares on a non-diluted basis.
AEM added: "The transaction is expected to result in the sale or transfer of a material amount Prism's assets and may result in a material change in Prism's business. Depending on market conditions and other factors, Agnico Eagle may, from time to time, acquire additional common shares or other securities of Prism or dispose of some or all of the common shares or other securities of Prism that it owns at such time."
AEM was down $9.04 or 3.65% to $238.71 in Canada yesterday.