Agnico buys Quebec gold junior stake for $41M

AI desk brief

Agnico Eagle is taking a C$57.2 million ($41.4 million) strategic stake in Radisson Mining to help advance the high-grade O’Brien gold project in Quebec’s Abitibi belt. Agnico will buy 53.4 million units at C$1.07/share, a 6% premium, for a 10.5% stake pre-warrants and up to 14.9% fully diluted, underscoring continued appetite among senior producers to secure Canadian ounces.

The deal gives Radisson funding for an underground access ramp, development workings, surface infrastructure and water management, while Agnico also gets board representation and rights in future financings. Radisson said O’Brien’s July 2025 PEA envisages an 11-year underground mine with C$175 million initial capex, toll milling at nearby Doyon, and an after-tax NPV5 of C$871 million at a $3,300/oz gold price, with a 74% IRR and one-year payback.

For the gold sector, this is constructive for junior valuations and a reminder that majors are still willing to back high-grade Canadian projects despite broader risk-off fatigue in small caps. The article also highlights the current market’s preference for grade: Radisson’s latest drill result hit 1,603.95 g/t over 1 metre within a broader 5.1m intercept grading 316.31 g/t, and the resource update lifted inferred contained metal 82% to 1.69Moz. Near term, watch for follow-on financing interest and whether other producers move to lock up exploration upside in Abitibi.