KEY POINTS
- Agnico gets a 19.99% Vizsla stake.
- Delta holds copper, gold, silver, lead and zinc.
- Vizsla adds two Alaska projects.
Agnico Eagle Mines, Canada’s largest gold producer, has agreed to sell its interests in two Alaska mining projects to Vizsla Copper in a deal that gives Agnico a major stake in the junior mining company while preserving exposure to future project revenues.
The transaction covers the Delta base and precious metals project and the Helm Bay gold project. Both assets are located in Alaska and will become part of Vizsla Copper’s growing portfolio in the state.
Under the agreement, Agnico’s US subsidiary will receive 22.5 million common shares in Vizsla Copper, valued at about C$32 million. The shares will give Agnico a 19.99% interest in Vizsla.
Agnico could increase its holding to about 22% if Vizsla shareholders approve the issuance of a further 2.9 million shares under the agreement.
Agnico also receives warrants
The deal also includes three million common share purchase warrants. Each warrant will allow Agnico to buy one additional Vizsla share for C$1.95 over a two-year period from the date of issuance.
Beyond its equity position, Agnico will retain financial exposure to both mining projects through royalties.
It will receive a 2% net smelter return royalty on the Delta project and a 3% royalty on Helm Bay. Vizsla will have the option to buy half of each royalty for C$5 million.
The Delta project is the larger of the two assets and contains several known volcanogenic massive sulphide deposits.
The project has a historical inferred mineral resource estimate of 15.4 million tonnes grading 0.6% copper, 1.6% lead, 3.8% zinc, 62 grams per tonne of silver and 1.7 grams per tonne of gold.
Several of the mineralised lenses remain open for expansion, giving Vizsla room to pursue additional exploration and potentially increase the project’s resource base.
The agreement also includes milestone payments that could provide Agnico with further financial returns as Vizsla advances Delta.
Vizsla will pay Agnico C$5 million if it declares a mineral resource estimate containing at least 300,000 copper-equivalent tonnes. Another C$5 million will become payable when a feasibility study is completed, while a further C$10 million will be due if Delta reaches commercial production.
The Helm Bay project provides Vizsla with additional exposure to gold.
Previous exploration at the property has identified several gold-bearing quartz veins. Some of the high-grade veins are associated with limited historical mining activity, suggesting further exploration opportunities.
The acquisition will give Vizsla two wholly owned projects in Alaska in addition to its existing Palmer project.
The expanded portfolio strengthens the company’s position in the region and gives it a broader mix of base and precious metals assets to explore and develop.
