Agnico Eagle Mines (AEM) said Wednesday it agreed to sell the 55% of Gunnarn Mining it did not already own to Goldsky Resources (GSKRF) for US$20M in cash, the issuance of more than 75.5M common shares of Goldsky at C$2.64/share, and the grant of a 2% net smelter return royalty on the Barsele project in Sweden.
Agnico Eagle (AEM) said divesting its direct interest in the Barsele project aligns with its prioritization of its high-quality internal project pipeline; as additional exploration work and studies will be needed to advance Barsele toward development, the company believes the project will benefit from being Goldsky’s (GSKRF) primary focus.
Following execution of the agreement, Agnico Eagle (AEM) will beneficially own more than 82.8M common shares of Goldsky (GSKRF), or ~32.5% of the issued and outstanding shares on a non-diluted basis.