The O'Brien gold project in Quebec's Abitibi has been drilled from the surface for years, steadily building a mineral resource. No one has ever gone underground. Agnico Eagle has agreed to fund that first step, committing roughly C$57 million to Radisson Mining Resources in a deal announced August 24.
The units are priced at C$1.07 each — a 19% premium to Radisson's 20-day average. At closing, Agnico Eagle will hold about 10.45% of Radisson on an undiluted basis. No broker was involved and no fees are payable.
Shares closed 22.40% higher at $0.9011, on dollar volume of about $1.6 million across 636 trades.
The funds go toward cutting an underground access ramp, building the related surface and underground infrastructure, and installing water management. Engineering and permitting work begins immediately, the company says. Radisson's 140,000-metre surface drilling program, separately funded from existing cash, continues in parallel.
Each unit includes half a warrant, with a full warrant exercisable at C$1.39 per share for five years. An acceleration clause fires after two years if the stock's 20-day average clears C$1.85.
Agnico Eagle also gains governance rights. Under an investor rights agreement, it can seat a director on Radisson's board and participate in future equity raises to maintain its position. Until the end of 2028, it will have sign-off rights on certain property transactions — royalties, streaming deals and secured financing. After that date, it receives 60 days' notice of such moves for as long as it holds at least 5% of the company.
CEO Matt Manson said in the announcement that the underground program is designed to "establish a development schedule for O'Brien." Recent drilling, he said, has traced gold mineralization to at least 1.9 kilometres below the old O'Brien mine, with plans to push drilling targets to 2.5 kilometres. An underground ramp is the tool that turns a geological model into something a producer can build a mine plan around.