Agnico Eagle backs Fury Gold Mines with $3M investment

[Redator]

Agnico Eagle Mines (TSX, NYSE: AEM) has nearly tripled its equity position in junior explorer Fury Gold Mines (TSX, NYSE American: FURY) with a further C$4.3 million ($3 million) investment.

In a press release Tuesday, Fury announced that Agnico had acquired approximately 6.73 million of its shares and warrants to buy the same number of shares for a per-unit price of C$0.64. The warrants have an exercise price of C$0.80 per share, valid for three years.

Fury Gold Mines opened the trading session at C$0.53 apiece, and ticked 2% higher at C$0.54 as of 10:45 a.m. ET. Its market capitalization is estimated at C$88.2 million ($64 million).

Agnico previously held 3.75 million, or 2.3% of Fury’s shares. The new investment takes its holding to approximately 6.3%, potentially rising to 9.9% if the warrants are exercised.

According to Fury, most of the new investment (C$3.9 million) will be used for this year’s exploration at its Committee Bay project in the Kitikmeot region of Nunavut. The project is located approximately 180 km northeast of Agnico’s Meadowbank mine and covers a district-scale area of more than 2,500 sq. km.

From its exploration efforts since 2019, the Fury team has identified numerous high-grade gold occurrences throughout a 300-km strike length on the property. The most significant is the Three Bluffs deposit, which has a mineral resource estimate of 2.1 million tonnes indicated grading 7.85 g/t gold (for 523,835 oz. contained gold) and 2.9 million tonnes inferred grading 7.63 g/t gold (for 720,364 oz. contained gold).

“We are pleased to have Agnico Eagle, one of Canada’s premier companies and a top global gold producer, make an additional investment that will permit Fury to advance our understanding of the exploration potential at our Committee Bay project in Nunavut,” Fury Gold Mines CEO Tim Clark said in a news release.

“We believe the Arctic is likely to become increasingly important for future mineral exploration and with this in mind, we are excited to accelerate our plans to build on past drilling success.”

In addition to Committee Bay, Fury also holds two gold projects in the James Bay region of Quebec, both near the formerly Newmont-owned Éléonore mine. The company recently added to its portfolio with the acquisition of Quebec Precious Metals (TSXV: QPM).