Quebec-focused gold explorer Alexandria Minerals (AZX-V) is now touting that Agnico-Eagle Mines (AEM-T, AEM-N) is its largest shareholder thanks to a $1.82- million investment.
Agnico-Eagle has bought 9.1 million units at 20¢ — well above the share price of 14¢ — giving the major a 9.9% stake in Alexandria. Each unit consists of one share and one warrant exercisable at 21¢ over two years.
Alexandria has been exploring along the prospective Cadillac Break near Val d’Or, Que., for several years– just 8 km from AgnicoEagle’s underground bulk tonnage Goldex gold mine — but has yet to make a big discovery.
Alexandria either owns or holds interest in 21 properties along the Cadillac Break, stretching from Matachewan, Ont., to Val d’Or, which make up 15% of the fault zone.
In the Val d’Or area, Alexandria holds a 23-km-long section of the Cadillac Break.
Alexandria president and CEO Eric Owens says the Agnico-Eagle connection is significant.
“Its investment at a premium is a powerful endorsement of the potential of our projects and we look forward to initiating our relationship with Agnico-Eagle and benefiting from its expertise,” Owens said in a statement.
Agnico-Eagle also operates the La Ronde gold-zinc-copper mine and the nearby Lapa gold mine in northwestern Quebec as well as the Meadowbank gold mine in Nunavut, the Kittila gold mine in northern Finland and the Pinos Altos gold mine in northern Mexico.
Agnico-Eagle expects to produce 1.1 million oz. gold in 2010.
Alexandria will use the proceeds from the financing for both corporate and exploration activities. The company is drilling its Akasaba project and is trying to expand the Orenada gold deposit.
Orenada has measured and indicated resources of 361,000 oz. gold and inferred resources of 175,000 oz.
Recent drilling from Akasaba returned 30 cm grading 15.9 grams gold and 19.7 metres grading 1.12 grams gold.
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