Agnico Eagle agrees to sell El Barqueño with milestone-linked consideration

Agnico Eagle ($AEM) agreed to sell its El Barqueño property in Mexico to Luca Mining. The initial consideration is $10 million, payable in Luca shares when the transaction closes. Further payments include up to $30 million linked to development milestones and $20 million tied to production milestones, creating potential consideration of up to $60 million before royalty value.

Agnico will also retain a 2% net-smelter-return royalty over defined resource areas. Luca can repurchase half of that royalty for $12.5 million. The structure gives Agnico continuing exposure to the project through shares, contingent payments and royalties, rather than an immediate $60 million cash exit. Closing and future milestone achievements remain separate conditions, and the buyer’s historical resource estimates are not newly established mineral reserves.

Sources:

• Luca Mining — El Barqueño acquisition agreement, CNW