Agnico Eagle agrees to invest in Scout and pursue Idaho exploration interests

Agnico Eagle ($AEM) agreed to invest approximately US$14.8 million in Scout Discoveries at $1.50 per share, giving it a 14.9% fully diluted holding. Electrum is committing another US$10.2 million as part of the approximately US$25 million financing. Closing depends on customary conditions and specified project-ownership transfers.

The accompanying arrangements provide a path for Agnico to earn up to 70% of the Elk City project through staged exploration spending totaling US$60 million. An option could provide a similar path at Muldoon through US$30 million of work. Those maximum interests depend on future spending and elections; Agnico does not immediately receive 70% of both projects. Initial exploration programs total about US$9.4 million through 2027, with Scout remaining operator during the earn-in periods.

Sources:

• Scout Discoveries — Agnico investment and earn-in arrangements, Newsfile reprint