Agnico Eagle takes 14.9% stake in Scout Discoveries via $25M placement

Agnico Eagle Mines Limited (NYSE: AEM, TSX: AEM) has agreed to invest $14.8 million in Scout Discoveries Corp., a private mineral exploration company based in Coeur d'Alene, Idaho, acquiring a 14.9% fully diluted ownership stake at $1.50 per share.

Concurrently, Scout's existing largest shareholder, The Electrum Group, agreed to invest $10.2 million at the same price, increasing its fully diluted ownership from 27% to 30%. The combined private placement totals $25 million with no warrants or fees, according to a statement from Scout.

Alongside the investment, Agnico Eagle and Scout will execute an earn-in agreement covering Scout's Elk City project in Idaho. Under the agreement, Agnico Eagle may earn a 51% interest by funding $20 million in exploration work over five years, with an option to earn an additional 19% — for a total 70% interest — by funding a further $40 million over three years.

Agnico Eagle also holds an option to enter a separate earn-in agreement on Scout's Muldoon project in Idaho, under which it could earn up to 70% interest by funding up to $30 million over eight years. Initial exploration programs across both projects total approximately $9.4 million through the end of 2027, with Scout serving as operator.

Scout also announced arrangements to acquire full ownership of seven additional projects — Speed Goat, Muldoon, Robber Gulch, Century, Moose Ridge, Independence, and Silverback — from subsidiaries of Elemental Royalty Corp. The acquisitions will be made through the issuance of 2,284,821 Scout shares and will eliminate approximately $4.5 million in future cash payments and $8.4 million in future work commitments.

Proceeds from the placement will support exploration at Scout's Cuddy Mountain, Speed Goat, and additional projects. The securities were issued under Rule 506(b) of Regulation D to accredited investors and have not been registered under the Securities Act of 1933.

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