AGNICO EAGLE ANNOUNCES DISPOSITION OF DELTA AND HELM BAY PROJECTS AND INVESTMENT IN VIZSLA COPPER
Agnico Eagle exits direct ownership of Delta and Helm Bay in exchange for a large equity stake, royalties and milestone exposure to Vizsla Copper.
Rhea-AI Summary
Agnico Eagle Mines (AEM) agreed to sell its Delta and Helm Bay projects to Vizsla Copper for equity, royalties and contingent milestone payments.
Under a September 8, 2026 purchase agreement, Agnico Eagle (USA) will transfer all interests in Delta Project LLC and the assets of Helm Bay to Vizsla Copper. Agnico Eagle will receive 22,523,283 Vizsla Copper common shares at closing (19.99% stake) plus 2,903,490 deferred shares, valued at a deemed C$1.26 per share for total base equity consideration of about C$32.0 million. It will also receive 3,041,480 warrants exercisable at C$1.95 for two years and net smelter return royalties of 2.0% on Delta and 3.0% on Helm Bay, with Vizsla Copper able to buy back 50% of each royalty for C$5 million. Agnico Eagle may earn up to C$20 million in Delta milestones and has committed to invest up to C$5 million in Vizsla Copper’s first post‑closing equity financing, subject to conditions.
Positive
- Approx. C$32.0 million deemed value in Vizsla Copper shares as base consideration for the projects
- Up to C$20 million in contingent milestone payments tied to Delta resource, feasibility and production
- 2.0% and 3.0% NSR royalties retained on Delta and Helm Bay, with a C$5 million 50% buyback option per royalty
- 19.99% to ~22.0% expected ownership range in Vizsla Copper, plus board nomination and anti‑dilution rights
- Up to C$5 million commitment to participate in Vizsla Copper’s first post-closing equity financing, subject to size and timing conditions
Negative
- None.
Key Figures
- Initial consideration shares
- 22,523,283 common shares
- Issued to Agnico Eagle at closing; approximately 19.99% ownership
- Deferred consideration shares
- 2,903,490 common shares
- Subject to disinterested shareholder approval
- Warrants
- 3,041,480 warrants at C$1.95
- Each warrant exercisable for two years from issuance
- Consideration value
- C$32,037,734
- Aggregate value of consideration shares at C$1.26 per share
- Net smelter return royalties
- 2.0% Delta; 3.0% Helm Bay
- Royalties granted to Agnico Eagle at closing
- Resource milestone payment
- C$5,000,000
- Upon Delta mineral resource disclosure of at least 300,000 copper equivalent tonnes
- Feasibility milestone payment
- C$5,000,000
- Upon completion of a Delta feasibility study
- Commercial production milestone
- C$10,000,000
- Upon Delta achieving commercial production
Historical Context
-
Agnico invested C$1,000,000.50 in Canada Nickel through a non-brokered private placement
-
Agnico entered a C$57,159,400 private placement for Radisson units with investor rights
-
Agnico agreed to acquire 8,696,000 Cadillac shares for C$60,002,400
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
net smelter return royalty financial
volume-weighted average trading price financial
beneficial ownership regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Stock Symbol: AEM (NYSE and TSX)
The Transaction is subject to certain closing conditions, including approval of the TSX Venture Exchange (the "TSXV"), and is expected to close in the fourth quarter of 2026.
Pursuant to the Purchase Agreement, Agnico Eagle will receive the following aggregate consideration:
- 22,523,283 common shares of Vizsla Copper (each, a "Common Share") representing approximately
19.99% of the issued and outstanding Common Shares as at the date of the Purchase Agreement, to be issued to Agnico Eagle at closing (the "Initial Consideration Shares"); - 2,903,490 Common Shares (the "Deferred Consideration Shares" and, together with the Initial Consideration Shares, the "Consideration Shares"), to be issued to Agnico Eagle following receipt of disinterested shareholder approval, subject to certain conditions;
- 3,041,480 Common Share purchase warrants, each exercisable to acquire one Common Share at an exercise price of
C per Common Share for a period of two years from the date of issuance (each, a "Warrant"); and$1.95 - a
2.0% net smelter return royalty on Delta and a3.0% net smelter return royalty on Helm Bay (together, the "NSRs"), to be granted to Agnico Eagle at closing pursuant to separate royalty agreements. Vizsla Copper will have the right to purchase50% of each of the NSRs at any time forC .$5,000,000
The Consideration Shares will be issued at a deemed price of
Vizsla Copper will also make the following contingent milestone payments to Agnico Eagle in respect of Delta (each of which may be satisfied, at Vizsla Copper's election, in cash or in Common Shares, subject to certain limitations set out in the Purchase Agreement):
C , upon Vizsla Copper publicly disclosing a mineral resource estimate for Delta indicating an aggregate mineral resource of at least 300,000 copper equivalent tonnes of metal;$5,000,000 C , upon completion by Vizsla Copper of a feasibility study for Delta; and$5,000,000 C , upon Delta achieving commercial production.$10,000,000
Where a milestone payment is satisfied in Common Shares, the number of Common Shares issuable will be determined by reference to the 20-day volume-weighted average trading price of the Common Shares at the relevant time, subject to a floor price of
On closing of the Transaction, Agnico Eagle is expected to hold approximately
The Transaction constitutes a "Reviewable Transaction" under TSXV Policy 5.3 – Acquisitions and Dispositions of Non-Cash Assets, as the Consideration Shares to be issued to Agnico Eagle will result in Agnico Eagle becoming an Insider of Vizsla Copper.
In addition, on closing of the Transaction, Agnico Eagle and Vizsla Copper will enter into an investor rights agreement pursuant to which Agnico Eagle will be granted certain rights, provided that it maintains certain ownership thresholds in the Common Shares, including: (i) the right to nominate one person (and in the case of an increase in the size of Vizsla Copper's board of directors to eight or more directors, two persons) to Vizsla Copper's board of directors; (ii) the right to participate in certain equity offerings and dilutive issuances in order to maintain or acquire up to the greater of Agnico Eagle's then-current ownership interest and an ownership interest of
Agnico Eagle is acquiring the Common Shares and Warrants as part of its strategy of acquiring strategic positions in prospective opportunities with high geological potential. Depending on market conditions, strategic priorities and other factors, Agnico Eagle may, from time to time, acquire additional Common Shares, Warrants or other securities of Vizsla Copper or dispose of some or all of the Common Shares, Warrants or other securities of Vizsla Copper that it owns at such time.
Post Closing Financing Commitment
Agnico Eagle has agreed to participate in the first equity financing completed by Vizsla Copper following the date of the Purchase Agreement (the "Post-Closing Financing"), in an amount not to exceed the lesser of (a)
An early warning report will be filed by Agnico Eagle in accordance with applicable securities laws. To obtain a copy of the early warning report, please contact:
Investor Relations
Agnico Eagle Mines Limited
145 King Street East, Suite 400
Telephone: 416-947-1212
Email: investor.relations@agnicoeagle.com
Agnico Eagle's head office is located at 145 King Street East, Suite 400,
Advisors
Stifel Canada is acting as financial advisor to Agnico Eagle. Davies Ward Phillips & Vineberg LLP is acting as legal advisor to Agnico Eagle.
About Agnico Eagle
Canadian-based and led, Agnico Eagle is Canada's largest mining company and the second largest gold producer in the world, operating mines in Canada, Australia, Finland and Mexico. Agnico Eagle is advancing a pipeline of high-quality development projects in these regions to support sustainable growth over the next decade. Agnico Eagle is a partner of choice within the mining industry, recognized globally for its leading sustainability practices. Agnico Eagle was founded in 1957 and has consistently created value for its shareholders, declaring a cash dividend every year since 1983.
For further information regarding Agnico Eagle, contact Investor Relations at investor.relations@agnicoeagle.com or call (416) 947-1212.
Forward-Looking Statements
The information in this news release has been prepared as at September 8, 2026. Certain statements in this news release, referred to herein as "forward-looking statements", constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under the provisions of Canadian provincial securities laws. These statements can be identified by the use of words such as "may", "will" or similar terms.
Forward-looking statements in this news release include, without limitation, statements relating to Agnico Eagle's receipt of Common Shares, Warrants and NSRs pursuant to the Purchase Agreement, the expected closing and closing date of the Transaction, Agnico Eagle's expected royalty interest in Delta and Helm Bay, the contingent milestone payments payable in respect of Delta and the manner in which they may be satisfied, Agnico Eagle's participation in the Post-Closing Financing, Agnico Eagle's expected ownership interest in Vizsla Copper upon closing of the Transaction, the investor rights agreement to be entered into between Agnico Eagle and Vizsla Copper on closing of the Transaction and Agnico Eagle's acquisition or disposition of securities of Vizsla Copper in the future. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Other than as required by law, Agnico Eagle does not intend, and does not assume any obligation, to update these forward-looking statements.
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SOURCE Agnico Eagle Mines Limited
FAQ
What exactly is Agnico Eagle selling to Vizsla Copper in this transaction?
Agnico Eagle (USA) will sell (i) all of the issued and outstanding membership interests of Delta Project LLC, which holds the mining claims comprising the Delta base and precious metal project, and (ii) the assets comprising the Helm Bay gold project. These disposals collectively form the Transaction with Vizsla Copper and its subsidiary Vizsla Copper US Acquisitions LLC.
How are the Delta milestone payments structured and how may they be paid?
Vizsla Copper will owe Agnico Eagle three contingent Delta milestones: C$5 million upon publicly disclosing a mineral resource estimate with at least 300,000 copper equivalent tonnes of metal; C$5 million upon completion of a feasibility study; and C$10 million upon Delta achieving commercial production. Each milestone can be satisfied in cash or in Vizsla Copper shares, subject to limitations including TSXV acceptance and a floor price of C$1.26 per share. Any milestone that would push Agnico Eagle’s ownership to 20% or more, or lacks required TSXV acceptance, must be paid in cash.
What ownership and warrant exercise limits apply to Agnico Eagle in Vizsla Copper?
At closing, Agnico Eagle is expected to hold about 19.99% of Vizsla Copper’s outstanding common shares. After disinterested shareholder approval and issuance of the deferred shares, its stake would increase to approximately 22.0% on a post-Transaction basis. The warrants are structured so they cannot be exercised if that exercise would result in the holder having beneficial ownership or control of 19.99% or more of the then issued and outstanding Vizsla Copper common shares.
What conditions must be met for Agnico Eagle’s post-closing financing participation?
Agnico Eagle has agreed to participate in the first equity financing completed by Vizsla Copper after the purchase agreement in an amount not exceeding the lesser of C$5 million and 10% of the aggregate gross proceeds. This participation is conditional on that financing having a minimum total offering size of C$30 million and being completed no later than December 31, 2026.
What regulatory approvals and classifications affect this transaction?
The Transaction is subject to closing conditions, including approval of the TSX Venture Exchange. It constitutes a “Reviewable Transaction” under TSXV Policy 5.3 on acquisitions and dispositions of non-cash assets because the consideration shares will result in Agnico Eagle becoming an insider of Vizsla Copper. An early warning report will also be filed by Agnico Eagle in accordance with applicable securities laws.